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 for an Appropriate Policy Mix [...]
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. [...]