- "A country's gross government debt (also called public debt, or sovereign debt) is the financial liabilities of the government sector." - 81
Fiscal policy often involves government borrowing, which can lead to increased government debt. This topic discusses the impact of government debt on the economy and how it can be managed.
Fiscal Policy definition: This topic will introduce the concept of fiscal policy, which is the use of government spending and taxation to influence the economy's growth rate.
Types of Fiscal Policies: This topic will discuss the two types of fiscal policies: Expansionary and Contractionary. It will highlight when governments employ these policies to stabilize the economy.
The tools of Fiscal Policy: The topic summarizes various fiscal tools and their functions. It will discuss different types of taxes, transfer payments, and government expenditures.
The Keynesian model: Developed by John Maynard Keynes, his theory of demand-side economics emphasizes the role of government in correcting the macroeconomic equilibrium. It will discuss demand and supply side economics.
Fiscal Policy and Economic Stabilization: This topic describes the aim and objectives of fiscal policy, which involves stabilizing the economy in terms of encouraging production, economic growth, and job creation.
Fiscal Policy and Inflation: In this topic, you will learn how fiscal policy has an impact on inflation due to the government's taxation and spending policies.
Fiscal Policy and Monetary Policy: This topic establishes the relationship between the fiscal and monetary policies and how they interplay in the economy.
Government Spending: This topic focuses on the government's expenditure, including social security payments, defence, healthcare, and education.
Government Revenues: This topic discusses various types of taxes, such as income and payroll taxes, excise taxes, and corporate taxes.
Government Debt: This topic examines the amount of money governments owe, highlighting the purpose of borrowing, and the impact of the debts on the economy.
Public Investment: This topic discusses public investment in various sectors, such as infrastructure, education, and health.
Debt-to-GDP Ratio: This topic discusses the critical indicator of government debt, the ratio of the country's debt to its Gross Domestic Product (GDP).
Fiscal Sustainability: This topic discusses the long-term viability of fiscal policies and potential changes due to demographic changes.
Political Economy of Fiscal Policy: This topic discusses how different political ideologies shape fiscal policies.
Fiscal Policy and Globalization: This topic explores how globalization and economic integration affect fiscal policies globally.
Fiscal Policy and Income Distribution: This topic examines how fiscal policy affects income distribution by changing tax and spending policies.
Fiscal Policy in Practice: This topic provides an overview of how countries apply fiscal policy in real-world situations.
Multi-level Government and Fiscal Policy: This topic examines how different levels of government, such as central or regional government, affect fiscal policy implementation.
The Role of International Organizations: This topic discusses the role of international organizations in advising and coordinating fiscal policies globally.
Economic Growth: This topic focuses on how fiscal policies impact economic growth by highlighting the relationship between government spending, taxes, and the overall GDP.
Expansionary fiscal policy: This type of policy involves increasing government spending or cutting taxes to stimulate the economy.
Contractionary fiscal policy: This type of policy involves decreasing government spending or increasing taxes to slow down the economy and combat inflation.
Automatic stabilizers: These are built-in programs that help stabilize the economy during times of economic downturns or recessions, such as unemployment benefits or welfare programs.
Public investment: This involves government spending on infrastructure or other projects that are expected to have long-term benefits to the economy.
Balanced budget: This is a policy where a government's expenditures match its revenues, resulting in an annual budget deficit of zero.
Deficit spending: This involves a government spending more money than it takes in and accumulating government debt.
Debt monetization: This involves a central bank purchasing government debt to provide the government with more funds.
Debt restructuring: This involves changing the terms of a government's debt in order to make it more manageable.
Debt forgiveness: This involves cancelling or reducing a government's debt.
Debt ceiling: This is a limit on the amount of government debt that can be accumulated.
- "Changes in government debt over time reflect primarily borrowing due to past government deficits." - "A deficit occurs when a government's expenditures exceed revenues." - 79–82
- "Government debt may be owed to domestic residents, as well as to foreign residents."
- "If owed to foreign residents, that quantity is included in the country's external debt."
- "In 2020, the value of government debt worldwide was $87.4 US trillion, or 99% measured as a share of gross domestic product (GDP)."
- "Government debt accounted for almost 40% of all debt (which includes corporate and household debt), the highest share since the 1960s."
- "The rise in government debt since 2007 is largely attributable to the global financial crisis of 2007–2008 and the COVID-19 pandemic."
- "The ability of government to issue debt has been central to state formation and to state building."
- "Public debt has been linked to the rise of democracy, private financial markets, and modern economic growth."
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- "The rise in government debt since 2007 is largely attributable to the global financial crisis of 2007–2008 and the COVID-19 pandemic."
- "Public debt has been linked to the rise of democracy, private financial markets, and modern economic growth."
- "Public debt has been linked to the rise of democracy, private financial markets, and modern economic growth."
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