kaal:claim:3402701-015
Because bonds sell below their redemption value, an open-ended bond queue grows without bound, depressing bond prices and creating a positive feedback loop that ends in a death spiral and failure of the peg.
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More generally, since the bonds would sell at a price lower than they were redeemed, the bond queue would grow without bound, leading to lower prices for the bonds and a positive feedback loop which would lead to a death spiral and the failure of the peg
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failuresupport: arguedfailure: bond-queue-death-spiralfamily: valuation-and-pricing-failureinstitutional-design
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