OPINION: With the government borrowing heavily to fund its pandemic response and recovery, it has been suggested it could simply cancel its debt by printing more money. READ MORE:* Here's a free way to pay off Government's foreign debt* Who's the Government borrowing the money from to pay for Covid-19 response? There are three major types of debt: treasury bills, treasury notes and treasury bonds. Treasury bills have the shortest maturity (less than a year) while treasury bonds have maturities of ten years or more. The RBNZ can also lower the official cash rate (OCR) to push retail interest rates (on mortgages and savings deposits) down.

Source: Stuff October 22, 2020 03:00 UTC