Debt Dilution: When It Is a Major Problem and How to Deal with It

December 2013
Business Review (Federal Reserve Bank of Philadelphia);2013 Fourth Quarter, Vol. 96 Issue 4, p1
Trade Publication
In light of the ongoing European debt crisis, the potential problems faced by countries in servicing their national or sovereign debt have attracted renewed attention. We had come to believe that sovereign debt crises were exclusively a phenomenon of developing countries, as all defaulters since World War II had been developing countries.1 Recent developments, however, show that default is an important concern for all countries, threatening the stability of world markets.


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