Governments never go bankrupt. So, lending to them is a wise idea. They can always repay. Using

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“Governments never go bankrupt. So, lending to them is a wise idea. They can always repay.” Using the concepts of involuntary and strategic default (see Chapter 14), examine this statement carefully.

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Development Economics

ISBN: 9780691017068

1st Edition

Authors: Debraj Ray

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Question Posted: Dec 16, 2023 01:05 AM

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Governments never go bankrupt. So, lending to them is a wise idea. They can always repay. Using

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The statement Governments never go bankrupt so lending to them is always wise is a simplistic and potentially misleading oversimplification While its ...View the full answer

Development Economics

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