Louis XVIII famously called the Estates General to avoid bankruptcy, but what usually happened when early modern states went bankrupt?

by Gunsgritsgravy

Did other countries in 17th and 18th Century Europe declare bankruptcy? What were the negative effects and why was the French monarchy scared of them? It seems like it would have been so much easier to balance the budget without all that debt interest, even if it did cause some short term economic pain.

boyohboyoboy

Do you mean Louis XVI?