Bonds comprise the vast majority of assets on the balance sheet of the central bank, so why not?
When gold was the primary asset on the balance sheet of central banks, we said that their currency was backed by gold. So why isn’t it backed by bonds now, when they have replaced gold in this regard?
When gold was the primary asset on the balance sheet of central banks, we said that their currency was backed by gold. So why isn’t it backed by bonds now, when they have replaced gold in this regard?