Default
in sentence
1154 examples of Default in a sentence
The threat of a
default
on US sovereign debt has been lifted – for now – but the deeper problem persists: For America’s Republicans and Democrats, negotiating a fiscal grand compromise appears to carry higher costs than playing a game of brinkmanship, even at the risk of
default.
Setting aside the external impact on the global economy, the damage to domestic stability and growth from anything other than a short-term technical
default
would be so severe that the political system (and both parties with it) could not withstand the backlash.
Domestic and foreign holders of US Treasury bills would regard a deliberate, unforced
default
as a betrayal of trust.
Some are reassured by this fact, because it suggests that a real
default
will not happen.
Outside the US, even a technical
default
would have profound effects.
In the case of a US default, however, it would start to attract capital inflows, causing the euro to rise, adding to already-substantial headwinds to growth and employment, and making recovery in its damaged peripheral economies nearly impossible.
One is reminded of the external consternation expressed during the 2008 crisis at the possibility of a
default
on debt carrying an implicit government guarantee.
The long-run effects of the US
default
threat will be overwhelmingly negative.
Finally, the US
default
risk may revive Zhou’s 2009 agenda (perhaps premature at the time) and accelerate the search for a workable alternative to the single-country reserve-currency model, which has outlived its usefulness.
The country’s largest such crisis, in 2001, brought down the local banking system and caused the Argentine government to
default
on its debts.
With rising tax revenues and the burden of debt gone after the
default
a decade ago, the government went on a spending spree: real public expenditure grew at double-digit rates most years since 2002.
After the period of rapid economic growth ended, Europe’s leaders came to rely, instead, on the threat of an evil that is greater than austerity: further destabilization of debtor countries, leading to default, expulsion from the eurozone, and economic, social, and political collapse.
If, however, the crisis results from a coordination failure among investors – when each investor refuses to roll over the government’s debt for fear that others will do the same, leading to a
default
– monetary policy can play an important role.
This is exactly what Trump often does when one of his businesses runs into trouble, and it would effectively amount to a partial
default
on the national debt.
But fiscal stimulus is constrained within the eurozone, where member countries no longer issue their own currency and “sovereign” debt therefore carries a
default
risk.
Everyone understands that compromise is preferable to the collapse of negotiations, disorderly default, and Greece’s forced exit from the eurozone.
Unless the sovereign debt of the rest of the eurozone is successively ring-fenced, a Greek
default
could cause a meltdown of the global financial system.
Fears of
default
began to affect other countries, such as Portugal and Spain, among the 16 members of the eurozone.
But if Italy and Spain are no longer at risk of default, or of abandoning the euro, Germany and other eurozone leaders will have room to decide whether to continue funding these very small states or politely invite them to leave the euro and return to national currencies.
When circumstances call for it, policymakers
default
to the predetermined scripts of neo-Keynesian economic models.
Worse, banks failed to understand the first principle of risk management: diversification only works when risks are not correlated, and macro-shocks (such as those that affect housing prices or borrowers’ ability to repay) affect the probability of
default
for all mortgages.
Greece Must ExitNEW YORK – The Greek euro tragedy is reaching its final act: it is clear that either this year or next, Greece is highly likely to
default
on its debt and exit the eurozone.
The only way to stop it is to begin an orderly
default
and exit, coordinated and financed by the European Central Bank, the European Commission, and the International Monetary Fund (the “Troika”), that minimizes collateral damage to Greece and the rest of the eurozone.
When the Greek crisis raised the specter of default, financial markets reacted with a vengeance, relegating all heavily indebted eurozone members to the status of a Third World country over-extended in a foreign currency.
The danger of
default
would disappear, as would risk premiums.
A tighter Fiscal Compact would practically eliminate the risk of
default.
Their debt would diminish in real terms and, if they issued Eurobonds, the threat of
default
would disappear.
Effectively barred from servicing its debt on the renegotiated terms, Argentina had little choice but to
default
again.
Resuscitating ideas advanced in the wake of Argentina’s earlier default, some experts proposed creating an international bankruptcy court in the IMF.
There was already movement after Argentina’s earlier
default
to add “collective-action clauses” that allowed the holders of an individual bond issue to take a binding vote to accept a restructuring offer.
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