- Definition of National Debt and National debt in the UK – National debt is essentially the total amount the government has borrowed from the private sector
- Should we worry about UK’s current situation? – Essay on reasons to worry and reasons not to worry
- Understanding Government debt statistics –
- History of National Debt – National debt is not a new thing. It has been much higher in the nineteenth century and 1940s/50s
- Who Owns Government debt? – Mainly private financial organisations – pension funds, investment trusts, personal investors. This is mainly by UK individuals, but about 20% from foreign investors. Bank of England now also holds significant amounts of government gilts.
- How is National Debt financed? – selling gilts / bonds to private sector through Debt management Office
- Which Country has highest / lowest debts? – From over 200% of GDP in Japan to close to 0% in Qatar
- Should we worry about national debt? – Yes and no, it depends..
- How and Why National Debt can effect Exchange Rate – Can cause depreciation under certain circumstances.
- Relationship between government borrowing and Inflation – Can in certain circumstances cause inflation.
- What is real national debt? – Controversy over the size of actual national debt – impact of PFI pension obligations e.t.c
- Impact of national debt on economic growth – why it can both increase and depress growth.
- Economic effects of National Debt
- Difference between national debt / budget deficit and trade deficit – Government borrowing vs importing more than exporting – completely different, but often confused.
- Why we borrow in recessions – to help shorten recession and increase domestic demand.
- Debt in the US
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