Questions tagged [government-debt]
251 questions
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Government bonds and printing money
Wikipedia: If a central bank purchases a government security, such as a bond or treasury bill, it increases the money supply, in effect creating money.
My question is: what is the difference between this (government issues bonds and the central bank…
Joe Jobs
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Do governments issue debt at low r to pay debt with high r?
I have a question. I know governments do debt rollover from time to time. But, to me it seems logical that governments do this when the interest rate of bonds they have issued in the past is higher than the one they could get now. This way, they pay…
QEdude
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Why did Greece not solve its debt problem by selling treasury bond to its own people?
Since the Greek vehemently opposed the conditions imposed by the EU for the 3rd bailout, I don't understand why the Greek government did not raise the money needed to repay the previous loans by selling treasury bond or privatizing public assets…
TelKitty
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Do new treasuries stop being issued during a debt suspension period?
Apparently the United States has been in a "debt suspension period" for the last 175 days, or almost 6 months.
Does that mean for the last 6 months no new US Treasury Notes and Bills have been issued?
If so, doesn't that create a problem for the…
Lassie Fair
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Krugman article - Government debt helps avoid a destructive scramble for cash?
I was just reading this Krugman article which contains the words...
I’ve already mentioned that having at least some government debt
outstanding helps the economy function better. How so? The answer,
according to MIT’s Ricardo Caballero and others,…
Mick
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Won't countries be in trouble if all sovereign debtors demand payment?
I'm trying to understand this r/explainlikeimfive analogy. I rectified typos, and simplified some names and numbers.
Won't Cal demand his principal back at some time in the future?
Similarly, won't countries' sovereign debts demand their…
user4020
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0 answers
How can a country grow with so much debt?
I was going through the Indian budget (Indiabudget.gov.in), and I noticed something very strange. The overall liability of the govt was many times more than the revenue estimated in the budget. How can such an economy grow when the govt has so much…
user471651
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Why can't countries immediately stop the deficit?
Governments often say things like "we will reduce the deficit by 2025".
Why can't they simply eliminate the deficit immediately by spending less than the taxes they receive?
Surely if a country is in debt, it should try and run a surplus so it can…
zooby
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Malaysia's national debt - who's correct?
Malaysia recently changed governments. The new finance minister claimed the national debt is actually RM1.087 trillion, and that the previous government had understated the national debt by some RM400 billion:
The official Federal Government debt…
Allure
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Difference between "Debt Held by the Public" and "Total Public Debt Outstanding"?
On https://www.treasurydirect.gov/NP/debt/rss, we have three numbers:
Debt Held by the Public: $14,387,199,090,397.24
Intragovernmental Holdings: $5,552,709,700,473.24
Total Public Debt Outstanding: $19,939,908,790,870.48
It seems the latter number…
Albert Albala
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Burden of debt; Internal or external financing?
Q1) How does the burden of an external public debt differ from that of an internal public debt?
Q2) Are there sny conditions under which neither external nor internal debt is a burden to a nation?
user11538
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Can a country's default on internal debt affect the rates of the external debt?
If a country is ready to default on internal debt and ready to confiscate their citizen's money to pay external liabilities, does that affect the yields of the external debt?
If yes, does that make it higher or lower?
Calmarius
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0
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1 answer
European Government Bonds correlations
Why do European Government Bonds 10Yr (or at least some of them) have such a high level of correlation?
Bella
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Why does the US government's credit rating have an impact?
To clarify, I mean why does the credit rating given to the US government by specific rating agencies matter? It seems like the reliability of the US government (or other first world nations) is common knowledge. Would a change in a credit rating…
feus4177
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1 answer
National debt vs having national assets
What hypothetical benefits and problems would a country have if it decided to have positive balance? That is, to have its debt much smaller than its assets. Similar to what Norway does.
And reverse, what would happen if Norway would decide to go…
Surprised Seagull
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