otázka |
odpověď |
začněte se učit
|
|
Government (or public or national) debt is the debt owed by a central government.
|
|
|
what is the government deficit? začněte se učit
|
|
the annual "government deficit" refers to the difference between government receipts and spending in a single year, that is, the increase of debt over a particular year.
|
|
|
How government debt can be categorized? začněte se učit
|
|
internal debt and external debt
|
|
|
začněte se učit
|
|
debt owed to lenders within the country
|
|
|
začněte se učit
|
|
debt owed to foreign lenders
|
|
|
začněte se učit
|
|
It usually refers to government debt that has been issued in a foreign currency.
|
|
|
How governments borrow money? začněte se učit
|
|
by issuing securities, government bonds and bills. Less creditworthy countries sometimes borrow directly from a supranational organization (e.g. the World Bank) or international financial institutions.
|
|
|
What government debt is used for? začněte se učit
|
|
is one of many methods of financing government operations.
|
|
|
What the practice of monetizing debt is all about? začněte se učit
|
|
This practice reduces government interest costs rather than canceling government debt, and can result in hyperinflation if used unsparingly.
|
|
|
What is the role of the central bank in monetizing the debt? začněte se učit
|
|
central banks may buy government bonds in order to finance government spending, thereby monetizing the debt.
|
|
|
What is the government implicit debt? začněte se učit
|
|
is the promise by a government of future payments from the state. Usually this refers to long term promises of social payments such as pensions and health expenditure; not promises of other expenditure such as education or defense
|
|
|
začněte se učit
|
|
Financing expenditures with funds that are currently available rather than borrowed.
|
|
|
What governments spendings consist of? začněte se učit
|
|
tax revenues + change in government debt held by public + change in monetary base held by the public
|
|
|
What is the most accepted measure of assessing a nation's debt? začněte se učit
|
|
|
|
|
What is debt to GDP ratio? začněte se učit
|
|
It is one of the indicators of the health of an economy. It is the amount of national debt of a country as a percentage of its Gross Domestic Product (GDP).
|
|
|
What is the interpretation of the debt to GDP ratio? začněte se učit
|
|
A low debt-to-GDP ratio indicates an economy that produces a large number of goods and services and probably profits that are high enough to pay back debts.
|
|
|
How changes of inflation affect GDP? začněte se učit
|
|
In the presence of significant inflation, or particularly hyperinflation, GDP may increase rapidly in nominal terms; if debt is nominal, then its ratio to GDP will decrease rapidly. A period of deflation would have the opposite effect.
|
|
|
What is a government bond? začněte se učit
|
|
It is a bond issued by a national government. Such bonds are often denominated in the country's domestic currency. Government bonds are sometimes regarded as risk-free bonds, because national governments can raise taxes or reduce spending up to a certain point; in many cases they "print more money" to redeem the bond at maturity.
|
|
|
What are sovereign bonds? začněte se učit
|
|
Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds. Investors in sovereign bonds denominated in foreign currency have the additional risk that the issuer may be unable to obtain foreign currency to redeem the bonds.
|
|
|
What types of interest rates do we have? začněte se učit
|
|
|
|
|
public debt on the primary market začněte se učit
|
|
Government Bonds are often issued via auctions at Stock Exchanges. There are several different methods of issuing most often auctions are used. There are two different methods of the payments: at the beginning and at the end.
|
|
|
public debt on the secondary market začněte se učit
|
|
The G-bonds are traded at Stock Exchanges. There are two types of trading: Outright and Repos.
|
|
|
Why lending to a government is considered risk-free? začněte se učit
|
|
because, in theory, the debt and interest can be repaid by raising tax revenues (either by economic growth or raising tax rates), a reduction in spending, or even by simply printing more money.
|
|
|
Can market interest rate be different for debts of different countries? začněte se učit
|
|
yes, the yield required by the market is higher for some countries' debt than for others. This reflects the views of the market on the relative solvency of the various countries and the likelihood that the debt will be repaid.
|
|
|
The Bretton Woods agreements agreements set the policies for? začněte se učit
|
|
the Bank for International Settlements (BIS), International Monetary Fund (IMF), and World Bank.
|
|
|
When analysing risk of public debt we need to? začněte se učit
|
|
Assess the expected value of any public asset being constructed, Determine whether any public debt is being used to finance consumption, Determine whether triple bottom line issues are likely to lead to failure or defaults of governments, Determine whether any of the debt being undertaken may be held to be odious debt, Determine if any future entitlements are being created by expenditures
|
|
|
What would happen if higher marginal tax rates were used to pay rising interest costs? začněte se učit
|
|
Savings would be reduced and work would be discouraged
|
|
|
What would be a consequence of rising interest costs? začněte se učit
|
|
it would force reductions in government programs
|
|
|
What risk factors are there in USA? začněte se učit
|
|
Restrictions to the ability of policymakers to use fiscal policy to respond to economic challenges; An increased risk of a sudden fiscal crisis, in which investors demand higher interest rates.
|
|
|
Debt levels may affect economic growth rates - is that truth? začněte se učit
|
|
Yes, when debt is high, GDP is low.
|
|
|
What is the conclusion about countries with high debt? začněte se učit
|
|
Countries with debt above 80 percent of GDP and persistent current-account deficits are vulnerable to a rapid fiscal deterioration
|
|
|
What may be a bigger factor than government debt in predicting interest rates? začněte se učit
|
|
The statistical relationship between a higher trade deficit and higher interest rates was stronger for several troubled Eurozone countries, indicating significant private borrowing from foreign countries
|
|
|
What are the predictions for spendings? začněte se učit
|
|
Between 2030 and 2040 mandatory spending will exceed government revenues.
|
|
|
Causes of Greek crisis according to greeks. začněte se učit
|
|
Slowing GDP growth; High Government deficit; High Government debt-level; Low Budget compliance; Low Statistical credibility;
|
|
|