Because U.S. debt is denominated in its own currency (and the dollar is the reserve currency), the U.S. will likely inflate away its debts—a de facto partial default through inflation—rather than an outright de jure default, since it can simply print money to pay.

forecastpending

Speaker

Carmen Reinhart

Evidence Quote

we won't default de jure but we might default to facto exactly exactly

Source

Carmen Reinhart on Financial Crises 11/23/2009EconTalk
Created: 6/15/2026, 9:20:19 AM

My Notes

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