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Apr 11, 2011

Rabobank: To default, or not to default

Rabobank economist Shahin Kamalodin wrote a paper about the consequences of a default for governments.

http://overons.rabobank.com/content/images/SP1102ska%20To%20default%20or%20not%20to%20default_tcm64-138583.pdf

The conclusions are: the economic costs of sovereign default, as estimated by scholars, are found to be less drastic than most believe possible. The political costs of default, on the other hand, are non-negligible.

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