Beyond hedging: how an innovative insurance layer could rewrite sovereign debt - The World Economic Forum
Beyond hedging: how an innovative insurance layer could rewrite sovereign debt - The World Economic Forum
Source: The World Economic Forum
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DW NOTE
The World Economic Forum wants to "rewrite sovereign debt" with an insurance layer. Translation: another mechanism for governments to borrow beyond their means while shifting default risk onto third parties. Every financial innovation that makes sovereign debt easier to issue makes fiscal discipline less necessary — which is why sovereign debt keeps growing.