Borrowing to finance imports
In Short
Can borrowing from banks, essentially printing money[1], effectively finance the import of clean energy and green products?
A Few Details
While limited borrowing to finance imports is feasible, the fairness of this approach is debatable. It risks shifting the problem abroad without generating domestic employment, and there is no guarantee that foreign corporations will produce green products without contributing to greenhouse gas emissions.
Excessive reliance on borrowing to pay for imports could lead to severe economic consequences. If imports significantly exceed exports, the currency could collapse, making imported goods prohibitively expensive for both the rich and the poor, ultimately destabilizing the economy.
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