New Business Education - Ново образование за бизнис

A+ R A-

PUBLIC DEBT, DEFICITS AND ISSUES WITH EXCESS DEBT

E-mail Print PDF

This paper presents a short and long-run analysis of the economic effects of public debt and budget deficits, whilst connecting unconventional public debt connected issues to the global current economic conditions. Short-term budget deficits are relatively desirable, while the long-term effects of deficit accumulation blend into the effects of public debt accumulation. The long-term economic effects of high public debt levels are crowding out investment, causing unemployment and increased inequality. While some of the mechanisms of dealing with high public debt levels don't have their place in the classical economic literature, they are a part of the anticrisis mechanisms of indebted countries.

The paper was prepared by MSc Martin Stojanovikj and prof. Blagoja Nanevski, PhD, published in the fifth edition of the Journal of Sustainable Development, pg. 20-37.

 

                                                                             alt