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What Exactly Is a “Default”?

Document Type

Blog Posting

Language

English (en)

Publication Date

2023

Publication Title

The Volokh Conspiracy on Reason

Abstract

Negotiations over the debt limit are still ongoing, and we are starting to hear a lot about the imminent prospect of a "default." The term gets thrown around a lot in the press, usually attached to words like "unprecedented" and "catastrophic." But the term creates confusion wherever it lands. Some of this reflects garden-variety misunderstanding. But I worry that some of it reflects a kind of intentional slipperiness by motivated actors who want to frame debt-limit issues a certain way.

Keywords

Debt Limit, Default, Federal Budget, Treasury

Publication Citation

Clarke, Conor, What Exactly Is a “Default”?, The Volokh Conspiracy on Reason (May 25, 2023), https://reason.com/volokh/2023/05/25/what-exactly-is-a-default/

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