There are other and more recent precedents for this - all debt periodically being forgiven. Graeber mentions this in is book "Debt: The First 5000 Years". Ever

There are other and more recent precedents for this - all debt periodically being forgiven. Graeber mentions this in is book "Debt: The First 5000 Years". Everybody knows it is coming, so the market works around it. I imagine it acts as a check on inflation via too many financial games.