The tendency for developing countries to be forced into default at surprisingly low levels of debt is called
A) The Debt Relief Laffer Curve
B) Original Sin
C) Serial Default
D) Debt Intolerance
E) Sovereign Default

Question

Quizplus · Accepted Answer

Debt intolerance refers to the phenomenon where developing countries experience financial distress and are forced into default at lower levels of debt compared to developed countries. This concept highlights the challenges these countries face in managing even relatively modest amounts of external debt.

The Tendency for Developing Countries to Be Forced into Default