What are the advantages of a nation allowing one of its states to default on its debt?

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The Politicus
Jul 27, 2021 12:33 AM 0 Answers
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Some Federations like the U.S.A. do not permit one of their states to file for bankruptcy. My question is why do some countries allow for one of their states to default on its debt, and what might be the advantages of doing so? By state, I mean any organized political community under one government. The question can be extended to cities and municipalities.

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  • July 27, 2021