Managerial Economics 2nd Edition by William Boyes

تمرين 7

Why might a policy that simply forgives $40 billion of debt not benefit those nations whose debt is forgiven? Would this policy and the incentives created say anything about the policy response to the "subprime mortgage" crisis experienced in the United States in 2007 and 2008; the government enacted legislation "forgiving" the debt of some debtors.