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From course:

Economics A Level (DONEEEEEEE)

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Question:

What are the Disadvantages of Debt Relief?

Author: eric_galvao



Answer:

-Cancelling Debt can lead to Moral Hazard development, as well as a Dependency Culture. Nations can feel Future Debts will be Cancelled, so they Excessively Borrow -Cancelling Debt of Corrupt Nations may mean More Money is Misused for Personal Gain or Oppression. -Debt Cancellation can be seen as a Donor Nation seeking Influence in the Recipient Nation


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