683 B
683 B
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