What Happens When a Country Goes Bankrupt Sovereign Default Explained (Podcast)

Can a country really go “bankrupt”? Not like a person or a company—but it can default.

In this episode, we break down what a sovereign default actually is, why it happens, and why the fallout can hit everyday life fast. The core idea is simple: default is a trust shock. Once trust breaks, borrowing gets harder, the currency can drop, imports become expensive, inflation can rise, banks come under pressure, and the real economy slows.

In this podcast you’ll learn:
• What sovereign default means (and what it doesn’t)
• The biggest triggers: debt pressure, foreign-currency borrowing, shocks, and politics
• The domino effect: currency → inflation → shortages → banking stress → recession
• What debt restructuring looks like (extensions, lower interest, “haircuts”)
• What the IMF and other lenders typically do—and why it’s controversial
• Can rich countries default too? “can’t pay” vs “won’t pay” vs “inflate it away”

If you enjoy simple explainers on money, macro, and geopolitics, subscribe for more episodes.

#SovereignDefault #DebtCrisis #EconomicsPodcast #Macroeconomics #Finance #GlobalEconomy #Inflation #CurrencyCrisis #IMF #Geopolitics

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