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 was a rare event. Whenever [...]
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 resources became insufficient to meet [...]
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 finance would burden the future. [...]