Archive | Public Debt

Public Debt: Meaning, Forms and Effects

After reading this article you will learn about:- 1. Meaning of Public Debt 2. Occasions of Public Debt 3. Different Forms 4. Redemption 5. Effects. Meaning of Public Debt: Borrowing by public authorities is of recent origin. This practice of revenue raising was not prevalent prior to the eighteenth century. In the middle ages, borrowing […]

Burden of Public Debt

After reading this article you will learn about the burden of public debt. Burden of public debt is a misleading and highly confused concept. The 1930’s and 1940’s witnessed an array of debate over the issue of debt burden. The focus of debate was between those who feared that the creation of debt in course […]

9 Leading Issues in Debt Management

This article throws light upon the nine leading issues in debt management. Some of the issues are: 1. Optimal Maturity Structure 2. Low Interest Obligation 3. Preference Pattern of Investors 4. The Issue of Debt Monetization 5. Maintenance of Interest Rate 6. Public Debt as an Instrument of Economic Stability 7. Debt Management and Need […]

Arguments in Favour and Against Capital Levy

After reading this article you will learn about the arguments in favour and against capital levy. Arguments in Favour of Capital Levy: Usually the following arguments are put forward justifying capital levy: 1. During the war, the poor sections of the community suffer more in terms of risking their lives by joining the defence force […]

Debt Burden and Intergeneration Equity

A controversy among economists relates to the question whether the borrowing method of financing shifts burden to future genera­tions. The controversy gives rise to a far ranging debate over debt burden in 1930’s and 1940’s. One such heated debate was between the conservatives, who feared that the creation of debt in the course of deficit […]

Domer’s View on Burden of Public Debt

Prof. Evsey. D. Domer states that the burden of the debt or the average tax rate covering the interest charges, equals, roughly speak­ing, the ratio of the interest charges to income; or the ratio of the debt to income multiplied by the interest rate paid on bonds. It will be assumed that this interest rate […]

Public Debt and Economic Growth

After reading this article you will learn about the role of public debt in economic growth of a country. Economic growth necessitate monetization of an increasing propor­tion of economic activities and larger volume of financial transac­tions. This in turn results in an increase in financial requirements of the economy. When economic growth gets accelerated, internal […]

shopify traffic stats