Pros & Cons for Monetising a Country’s Debt

A government can decide to monetise its debt, which removes its liabilities. The central bank of a nation creates money and uses this money to purchase government debt instruments such as bonds. This is one method of financing government expenses when foreign nations and other investors do not buy enough bonds to meet a government's spending obligations. The pro is that monetizing the debt allows the government to temporarily pay its debts, the con is that it is causing inflation and drives investors of to other countries/assets.

Source: Ehow: http://www.ehow.com/list_6863875_pros-cons-monetizing-debt.html#ixzz2ImZ026Ja