26 lines
708 B
Markdown
26 lines
708 B
Markdown
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-5-chapter-03 -->
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# Unfunded Debt
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## Definition
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Debt obligations that are contracted without being backed by specific funds
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or revenues set aside for their repayment, typically consisting of short-term
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obligations and arrears that must be paid from current revenues or new borrowing.
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## Source Chapter
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Book V, Chapter 3
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## Context
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Smith distinguishes between funded and unfunded debt as two methods by which
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governments contract debt, with unfunded debt being the first resort when
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governments borrow without creating dedicated revenue streams for repayment.
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## Economic Domain
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Regulation
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---
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