Can a country go “bankrupt”? Not like a person or a company—but it CAN default.In this Explain it to me video, we break down what a sovereign default really is, why it happens, and why the damage spreads so fast. The key idea: default is a trust shock. Once trust breaks, borrowing dries up, the currency can fall, imports get more expensive, inflation can surge, banks get stressed, and the real economy slows.You’ll learn:• What “sovereign default” actually means (and what it doesn’t)• Why countries default: debt pressure, shocks, and politics• The foreign-currency trap: earning local, owing dollars/euros• The domino effect: currency → inflation → shortages → bank stress → recession• What debt restructuring looks like (haircuts, longer terms, lower interest)• What the IMF and other lenders do—and why people argue about it• Can rich countries default too? “can’t pay” vs “won’t pay” vs “inflate it away”If this helped, consider subscribing for more simple explainers on the economy, money, and geopolitics.#SovereignDefault #DebtCrisis #EconomicsExplained #Macroeconomics #Finance #IMF #GlobalEconomy #Inflation #CurrencyCrisis #Geopolitics— FOLLOW & LISTEN —🎧 Spotify: https://open.spotify.com/show/2KZ2NUu1MjJolN2alJltnN🛰️ RSS (all apps): https://anchor.fm/s/10881159c/podcast/rss🍎 Apple Podcasts (EN): https://anchor.fm/s/10881159c/podcast/rss🍎 Apple Podcasts (PT-BR): https://anchor.fm/s/1087502fc/podcast/rss… and everywhere podcasts are available.— SUPPORT MY WORK —⭐ PATREON: https://patreon.com/ExplainItToMe_⭐ Buy me a Coffee: https://buymeacoffee.com/explainittome_— STAY CONNECTED —✅ Subscribe to the channel🔔 Turn on notifications💬 Drop your questions for the next episode