What happens when a major economy can’t pay its debts in dollars? | Curio
News and insights read out for you.
10,000+ audio articles. 50+ world-leading publications.

All in 1 subscription.

The Guardian logo

What happens when a major economy can’t pay its debts in dollars?

7 mins | Mar 24, 2022
story image
Russia is about to show us. The problem for Putin’s regime is political rather than financial — that’s why, Adam Tooze argues, this would be no ordinary default. "Sovereign defaults send shockwaves through the global financial system. They signal that a debtor at the very apex of the monetary system — a government — is either unwilling or unable to meet its obligations. Since, in a modern monetary system, government debt is generally treated as the ultimate safe asset, this is a shock that goes beyond the arena of high finance."
Get unlimited access free for 7 days, then $6.67/month (billed annually)
Get started