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The same debt spread over more payers automatically reduces the individual burden of future taxpayers.
The coalition is engaged in a "series of transformations" that will decentralise the state, rebalance the economy away from the financial sector and debt, spread power of all kinds more fairly across the country and across social classes, all this despite inheriting "a culture which is very resistant to pluralism in politics," Clegg said.
The situation further deteriorated in 1982, when Mexico's default on its external debt spread through the region.
The New York Fed estimates there's roughly $1.2 trillion in outstanding student debt spread across more than 43 million borrowers.
Then the new Greek government elected that October reported that the Greek deficit was worse than previously reported; hedge funds began betting against Greek bonds; and then the run on sovereign debt spread to Portugal, Spain and now Italy, where interest costs on bonds keep rising and the European authorities keep playing catch-up.
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Debt spreads have shrunk to less worrying levels.
Interest rates have plunged and debt spreads over German bonds have narrowed (see chart).
The boom that went before the 1994 crash saw share prices soar and debt spreads plummet, as many institutional investors discovered emerging markets for the first time.
The IMF reckons that, if volatility moved to two standard deviations above its post-1990 average, emerging-market debt spreads wouldebtre than double.
We are facing a possible global financial contagion triggered by European banks choking with sovereign debt spreading their woes to an already weakened U.S. financial system.
What De Grauwe and Ji show is that the rush to austerity in Europe largely reflected the surge in sovereign debt spreads after Greece got in trouble; the bigger the spread, the harsher the austerity.
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