Questions tagged [government-debt]

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Best source for interest payments and upcoming maturities for sovereign external debt?

I am looking for data on a country's interest payments and upcoming maturities on public external debt in a given year, e.g. how much foreign currency the Ukrainian government will need this year to ...
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Is the Federal Reserve waiving itnerest payments on its treasury portfolio?

I read a rumor on a forum that the Federal Reserve has recently (since the pandemic) been waiving interest payments on its portfolio of US treasury bonds and notes. I was unable to verify this rumor ...
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How does inflation make the impact of public debt better?

Why is a high rate of inflation better for weathering effects of a huge govt. debt ?
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Where do governments get their loans from?

Do governments get loans from the private banks? Or do they loan directly from the central banking institutes? And how is the interest rate determined for these loans (say for a fixed maturity), is ...
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Debt sustainability vs dynamics

Im having trouble understand the difference, I have both the equations but still fail the meaning of each. Cant find any source that explains this. Any help or guidance to where I could find it would ...
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Why there's a large difference between fiscal deficit and debt to GDP ratio of a country?

The fiscal deficit is the gap between expenses and earnings. For the fiscal year 2020-21, India's debt to GDP ratio was 59.3%; and the fiscal deficit was 9.2% of GDP. How come debt is larger than the ...
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What are the consequences of an increase in interest rates for States?

As the inflation is high, central banks such as the FED and the ECB are about to raise their rates. One of the consequence is that the stock market is falling and in particular companies having a lot ...
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How is North Korea paying for all its imports?

As far back as the 1980s it seems that North Korea has imported more than it exported. Given that they weren’t exactly a wealthy country back then, and as most countries stopped debt financing ...
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Are there any historical fixes to high interest on national debt

If I were to buy a bond of Argentina, like AL30, it is worth ~30 cents for every dollar, if I understand correctly, this means that, if the country required more money and issues more bonds the value ...
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List of private investors who own the most US debt

At this website (document `Federal debt', table FD-5) I see that more than 16 trillion dollars of US debt is owned by private investors. Is there a list available of the private investors who own the ...
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When debt to GDP is only around 85%, how can this article quote as 300%?

I was reading an article in FT, where debt to GDP is quoted as 300% for US and Japan. However, all the official sites for US quotes the debt to GDP as 85% for US. This article is from a reputed ...
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Sources for information about Danish general government finances since 2000 (in English)

for a report I have to write about Danish public finances and fiscal policy (budget balance, debt, revenues, expenditures) I'd like detailed information dating back to 2000 or publications giving an ...
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Problem with the definition of external debt

This is how external debt is explained in wikipedia: "In public finance, external debt (or foreign debt) is the component of the total government debt which is owed to foreign creditors; its ...
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Have there been more US CDS curve inversions since 2011, and do these correlate with (political) disputes around the debt ceiling?

Gori proposes a model of the 2011 US debt ceiling crisis in which the spread (and ultimately inversion) of the US government credit default swaps (1Y/2Y vs 5Y) is used as a proxy measure for the ...
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Economic indicators for government debt (sovereign debt)

I am looking at sovereign debt as a percentage of GDP. However, due to external factors like exchange rates, the percentage may change from one year to the next even if a government did not borrow any ...
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Relationship between taxation, national debt, and pool of private investment money

We've all heard the argument that an increase in taxation of the wealthy, or of investment earnings in particular (capital gains + dividends) will discourage investment and hurt the overall economy. ...
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Do governments have to pay interest on government debt held by the central bank?

Through open market operations, the central bank may buy government debt to increase the money supply. Does the government need to pay interest on the debt held by the central bank, or does the debt ...
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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, ...
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The link between economic growth, inflation, interest rates and fiscal deficit

I want to ask a question about how economic growth, inflation, interest rates is linked to fiscal deficit. I was reading a book on introductory economics and the following passage came up: If a ...
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Relation between budget deficit and inflation?

In Iran we have had a high inflation rate for several decades (usually above 20 percent). Some of the top economists of the country say that it is mainly because the government spending is ...
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How to weakly predict T-bill rates?

I know, I know -- if I could predict Treasuries, I could leverage that information, various forms of the EMH, etc. But a lot of people have mortgages (ARMs) tied to US1Y, and so having some kind of ...
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Is there a “runaway” threshold for Debt-to-GDP Ratio in the U.S.?

Last year, when Congress was debating the stimulus/relief packages, one Senator made a comment about the debt-to-GDP ratio and how we are approaching a point in that ratio that will have some major ...
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Do Fed OMOs directly and immediately increase M1 or M2 if they buy treasuries from a member bank? And what proportion of OMOs does that constitute?

I commonly hear that when the Fed conducts open market operations, it is directly increasing the money supply by exchanging newly created electronic money for US treasuries. But in the case where the ...
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detailed account of government borrowing and fed open market operations

I would like to read an extremely detailed (yet, if possible, accessible) account of exactly what happens when the US government borrows money -- how rates are negotiated, who exactly the ...
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How are sovereign bond interest rates determined?

They are a lot of questions about the price of a bond or its yield. Why do people buy negative interest rate bonds? How did Portugal draw down their interest rates on pubic debt? ... and so on Mine ...
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Financial manipulation and Inflation as tools for sovereign debt default

In the book This Time Is Different, by Reinhart and Rogoff, in chapter 8, the authors state that Higher minimum level of reserves (?) And/or upper bound/ceiling to interest rates ( will help increase ...
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First order approximation of consolidated budget constraint describing the evolution of government debt

I am trying to derive a first order approximation of the government's budget constraint around a zero inflation steady state. This is from Jordi Galís 2020 paper "The effects of a money-financed ...
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Is there a source which informs the public of who is buying up newly issued U.S. Government debt?

Is there a list somewhere of who is buying the newly issued debt that will finance the American Rescue Plan (the $1.8 trillion stimulus package signed recently)? Of course, I have an idea of who owns ...
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Why isn't high inflation along with robust welfare a 'good' system?

High inflation, by definition, means that the demand for goods and services is higher compared to the demand for currency. In other words, people are more willing to give up currency for goods and ...
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Risks asscoiated short term stimulus as interest rates approach zero

TL;DR Government interest rates are approaching zero. What are the risks to borrowing large sums in the current enviroment? Would inflation occur? Full Story I was recently reading an article about ...
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How does the treasury determine the rates of the bonds they sell?

My understanding is that price and yields are determined via supply and demand. How are the interest rates determined when the bonds are auctioned off?
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What are the economics advantages for not rolling a debt (as a country)

Let's assume that a country has a GDP growth rate of approximately 1% per year (the number is not important). Then the government of such a country can theoretically roll its current debt and even ...
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How much of new debt in Italy is due covid?

The debt to GDP of Italy ballooned in 2021 to 158.5% (https://www.reuters.com/article/us-italy-budget-debt-idUSKBN29L0PP). That is almost 20% increase from 2019. I wonder how much of that is just ...
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What is the difference between "borrowing" money and "printing" money?

When a country's government has a budget shortfall, that country has to find some way to pay its contractors/emplooyees. Unlike a normal company, the government can't simply go to the bank and ask to ...
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Does IMF consider the international reputation of a country?

Hi I have three question below which I tried searching on internet and read a lot of literature as well. Besides all the literature sources I need to know some practical knowledge of people out there. ...
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How did the US Government fund its deficit when the Federal Reserve was pruning its balance sheet in 2018-1019?

The primary way for Governments to fund their deficits is by issuing new currency from the central bank against new treasury bonds. The Federal Reserve reduced its [balance sheet]1 from 4.4 trillion ...
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What are the 'Public Account Liabilities' of the Government of India?

In the Quarterly Report on Public Debt Management for the Quarter Jul - Sep 2020 of the Government of India, an increase in 'Public Debt Liabilities' is declared. What are they?
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Difference between 'Internal Debt' and 'Market Loans' in RBI public debt statistics

While perusing RBI public debt statistics, I am at my wits end in trying to figure out the table headers. I am unable to sum up any combination of them to get any other. Specifically, what is the ...
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Can the US government selectively cancel debt held by the Federal Reserve?

Sort of a follow-up to this question on the Politics SE, which asked about the US government cancelling debt held by China. From the answers to that question, this kind of selective default is not ...
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Why is market absorption of issued US Treasury Bonds (with the Fed purchase plan) a problem?

Financial market reports suggest that there are uncertainties about the Federal Reserve's ability to absorb new US Treasury Bonds issued in larger quantities to support the US government's growing ...
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Is the debt owed to resourceful producers by resourceless consumers practically irrepayable?

Here is my argument for the debt owned by resourceless consumers to resourceful producers (as currency, bonds, loans, or other means). Is it correct? If not, where am I going wrong? Economic value is ...
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Why don't Governments do away with the optics of taking on debt against new currency, and instead issue a limited currency every year (say 5% of GDP)?

Governments engage in the optical illusion of taking on debt against issued currency. The debt is effectively owed by the Government to itself. The value of the debt is completely controlled and ...
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What would happen to Eurozone and EU if Italy defaults on its debt?

Question What would happen to Eurozone and EU if Italy defaults on its debt? Background & disclaimer This direct question is an attempt to amend the more expanded question. Given that this ...
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Oliver Hart said that financing deficits by printing money can lead to hyperinflation "once the economy is close to full capacity". What does he mean?

In response to a poll on Modern Monetary Theory, Nobel Laureate Oliver Hart said that Governments financing deficits by printing more money "can quickly lead to inflation or even hyperinflation ...
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What exactly is the risk Italy's high debt to GDP ratio poses to Eurozone and EU? [closed]

Background Us laymen read all around that Italy's weak economy and its high government debt/high debt to GDP ratio is threatening the financial stability and health of Eurozone and EU. However, little ...
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For stability, is there a limit to the sovereign debt that a Government owes to itself against issued fiat currency?

Looking beyond the optical illusion of Governments owing debt to Central Banks, Governments effectively owe themselves the sovereign debt created against issued fiat currency. By definition, there ...
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Why it is important to observe if the 10Y treasury yield moves nowadays?

in the context of low yields, where fed continues with fiscal stimulus, I've heard from many economists that this week the 10Y treasury rate has been finally increasing. In which situation is this ...
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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, ...
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What happens when government bonds purchased as part of central bank quantitative easing (QE) reach maturity?

Does the central bank ask the government to pay or are they rolled over?
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How does high U.S. federal debt affect its citizens?

My apologies if this is a silly question. My background isn't in economics, though wish I had some. During the 2008-9 financial crisis, federal debt increased significantly and there was a small talk ...
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