Economy, Insure Thyself
If countries covered their risks by issuing a different kind of national debt, tied to their own GDP or a similar measure of economic success, many would have a much debt burden today. Just ask Japan.
https://prosyn.org/T0vDeQL
NEW HAVEN – The basic principle of financial risk management is sharing. The more broadly diversified our financial portfolios, the more people there are who share in the inevitable risks – and the less an individual is affected by any given risk. The theoretical ideal occurs when financial contracts spread the risks all over the world, so that billions of willing investors each own a tiny share, and no one is over-exposed.