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Governments going into too much debt is a very old problem that has happened hundreds of times before, even in the USA, so we know with high likelihood how it e
by schmidtleonard 2y ago
Governments going into too much debt is a very old problem that has happened hundreds of times before, even in the USA, so we know with high likelihood how it ends: inflation and soft default, not hard default. The timeline is the major unknown.
https://www.imf.org/external/pubs/ft/wp/2015/wp1507.pdf https://www.imf.org/external/pubs/ft/wp/2015/wp1507.pdf
- wakawaka28 2y agoInflation is not exactly preferable to hard defaults, although it really depends on who is being defaulted on. Defaulting on pensioners would be pretty awful. Defaulting on foreign-owned bonds would be less awful.