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# Perpetual Funding

## Definition

The practice of converting government debt into perpetual annuities that pay
interest indefinitely without requiring repayment of principal, allowing
governments to borrow larger sums than would be possible through short-term
anticipations.

## Source Chapter

Book V, Chapter 3

## Context

Smith traces the evolution from anticipation to perpetual funding as governments
sought to borrow larger sums, noting that this practice delays but does not
eliminate the burden of public debt.

## Economic Domain

Regulation

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