Deep Dive: What EMs can teach developed counterparts about the risk of sovereign debt crises - Investment Week
Deep Dive: What EMs can teach developed counterparts about the risk of sovereign debt crises - Investment Week
Source: Investment Week
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DW NOTE
The UK and US are running 5-6% deficits with debt-to-GDP ratios above 120%, yields rising sharply, and no credible consolidation plan. The lesson from emerging markets isn't theoretical—it's that sovereigns with reserve currencies told themselves the same story right up until they couldn't. Britain devalued four times in thirty years before the 1976 IMF bailout; imperial privilege bought time, not immunity.