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Debt intolerance

From Citizendium - Reading time: 1 min

Debt intolerance [r]: The attitude of investors to a country's bond issue arising from a belief that the country in question is more likely than other equally indebted countries to default on the servicing of their public debt, as a result of which the market- determined discount rate on that country's bonds is increased to an extent known as a risk premium. [e]

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Licensed under CC BY-SA 3.0 | Source: https://citizendium.org/wiki/Debt_intolerance
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