Foreign Debt

外債　—　Institutions

Government bonds borrowed from foreign investors. The Ottomans began issuing them in 1854.

Government bonds borrowed from foreign investors. The Ottoman Empire began issuing them during the Crimean War in 1854 and defaulted within twenty years.

⚠ Unlike increasing the money supply, foreign debt does not cause inflation. Instead, on the day repayment becomes impossible, a portion of sovereignty can be seized.