New study reveals optimal strategy for sovereign default on creditors
The article discusses how countries sometimes don't pay back their debts to their own people, and how this affects their economy. By studying data from Spain, the researchers found that these defaults happen rarely, but when they do, they are usually caused by high debt and interest rates. The government's decisions on debt and default are influenced by how they want to distribute money among different groups of people. This can lead to fluctuations in debt levels and interest rates over time.