In: Economics
Hi, I asked a similar question yesterday and the answer was amazing. However, this is a case study so I need relevant data / real cases / real examples and information on these issues. I am struggling to find any key sources for any of these question (only need to do 1 question but in depth, about 3000 words). Thanks
Government debt also known as( public interest, National debt,and sovereign debt )owed by a central government.( In federal States "government debt" may also refer to the debt of a state or provincial, municipal or local government) By contrast,the annual "government deficit" refers to the difference between Government receipts and spending in a single year.A Central Government with its own currency can pay for its spending by creating money ex novo.In this instance, a government issue securities not to raise fundw but instead to remove excess bank reserve (caused by government is spending that is higher than tax receipts) and create a shortage of reserves in the market so that the system as a whole must come to the Bank for liquidity.
governments create debt by issuing securities, Government bonds and bills .Less creditworthy countries sometimes borrow directly from a supranational organization or International financial institutions.
As the government draws its income from much of the population,government debt is an indirect debt of the taxpayers. Government debt can be categorised as internal debt and external debt. Another common division of government debt is by duration until repayment is due. Short term debt is generally considered to be one year less long term is for more than ten year.Medium term debt falls between these two boundaries. A broader definition of government debt may consider all government liabilities, including future pension payments and payment for goods and services the government has contracted but not yet paid.
Although a national government may choose to default for political reasons, lending to a national i Government in the country's own sovereign currency is generally considered as risk free and is done at so-called risk free interest rate".this is because the debt and interest can be repaid by raising tax receipts a reduction in spending, or by creating more money. It is widely considered that is would increase inflation and thus reduce the value of invested capital this has happened many times throughout history.
As we know that factors of macroeconomics affects population,not just some individuals
some examples of macroeconomics factors:-rate of unemployment, economic outputs and inflation rate.Government monitored these all factors very closely.for the liberalisation of the economy India has undertaken many reforms which include reduction in trade barriers, removal of industrial licensing system and liberalization of capital flows.