May 5, 2009

MEGAN MCARDLE: The Dangers of Playing With Credit Markets. “A government, of course, can default whenever it wants, under any terms it wants. It is limited only by the prospect of future difficulties in borrowing money. But in times of duress, politicians–especially in emerging markets–are willing to deal with that comfortably far-off possibility, rather than find the money to pay the creditors now.”

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