we will assume a "zero-coupon" bond, meaning that all the investment risk is calculated into the difference between par value ($100,000) and the discount Brazil must offer to attract investors
Most states issue both "government bonds" [...] and "sovereign bonds"
if the labour market ever worked the way neoclassical theory imagines it--if wages were flexible, Say's Law held, and all willing workers found jobs in some orthodox "full employment" dream--then workers would have no fear of "the sack."
"Monetarism" is the name given to the influential but failed attempt on the part of the neoclassically inspired monetary authorities, during the late 1970s and early 1980s, to control money markets--and therefore the value of money--from the supply side.
Keynes called this propensity to hold assets in money form "liquidity preference," "liquidity" being the ease with which an asset can be readily monetized, i.e., exchanged for money. So if "liquidity preference" is high, it suggests people feel insecure or uncertain
