Why Not Default?: The Political Economy of Sovereign Debt

How creditors came to wield unprecedented power over heavily indebted countries—and the dangers this poses to democracy

The European debt crisis has rekindled long-standing debates about the power of finance and the fraught relationship between capitalism and democracy in a globalized world. Why Not Default? unravels a striking puzzle at the heart of these debates—why, despite frequent crises and the immense costs of repayment, do so many heavily indebted countries continue to service their ...