Japan's sovereign debt reached 261.2% of GDP in 2023, and its debt-to-GDP ratio has long been the world's highest amid persistent deflation. That mattered little while the country's central bank was buying half of all outstanding government bond debt under its quantitative easing program, at...
Domestic political factors in the United States continue to delay debt ceiling negotiations, which may eventually lead to a U.S. federal government shutdown. Neither the United States nor the global economy can afford the costs. First of all, the current economic situation in the United States ...
The supply-shocks era represented the first time in a generation where inflation significantly eroded the real value of global public debt. For EMs, the erosion averaged 3.7% of GDP between 2020 and 2023; the average for advanced economies (AEs) was twic
Nations that have invested fewer resources than the rest of the world has invested in them are known as debtor nations. In July 2023, The United States is one of the top five world's biggest debtor nations, posting atrade deficitof $65 billion.A trade deficit is an economic measure of i...
“It was clear that Puerto Rico was in deep financial distress,” says David Skeel, Chairman of the Oversight Board appointed to help the Commonwealth get back on track. “It wasn't just one area... It had too much debt. The government was too big. The government was in...
The United States Government Accountability Office (GAO), says that a rising national debt, particularly when viewed as a percentage of a nation's GDP, is a big problem, although a long-term one. The GAO explains that the more debt a country holds, the less money it's able to put ...
Why is the interaction between private and public debt important for economic growth? Caner said one reason might be that the government guarantees much private debt, including mortgages and school loans. "Greater private default often means greater public debt," he said. ...
TheU.S. national debtsurpassed $34 trillion this month for the first time in history and with large deficits expected to continue, questions about the sustainability of the debt burden are likely to mount. The federal government just recorded its third-largest deficit in history when the U.S....
month, Fitch downgraded the United States' credit rating from AAA to AA+, making it another international credit rating agency to raise questions about the governance and fiscal management capabilities of the U.S. government since Standard & Poor's downgrade of the U.S. credit rating in 2011....
The recent history of the United States clearly illustrates the critical importance of a country’s overall perceived political and economic stability in relation to its currency valuations. As the U.S. government andconsumer debtrise, interest rates are maintained near zero in an ...