[zozbot123]

Heck, when government entities take on too much debt, the bond vigilantes get involved, interest rates spike upwards and bad economic things happen! Inflating your debt away will just save you from outright sovereign default - it won't save you from the bond vigilantes and from spiking nominal rates.

[stephen_g]

Yes, clearly, just like they did in Japan. Oh, wait, no, Japan only proved that the Government is fully in control of the bond market.

The private sector wants Government bonds. If they won’t buy all of them at the interest rate the Government wants to sell them for, there’s no practical reason they can’t just sell excess bonds to the central bank (except for silly policy in some countries).