Paper: mpra.ub.uni-muenchen.de/125094/1/MPR...

#macroeconomics, #monetaryeconomics, #DSGE, #fiscaldominance, #monetarypolicy, #debt, #deficit, #fiscalsustainability, #inflationfinance, #macromodelling, #debtlimits, #optimalpolicy, #stabilisation, #economicsresearch, #shortages

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The rising #NationalDebt, #BudgetDeficits, and unusual requirement to get permission to raise #DebtLimits, make the risks of default higher.

Most countries now guarantee to back their sovereign debt, so they never default.