Less Obvious Risks of High State Indebtedness
AbstractWithin the discussions on the growing indebtedness of developed countries and the threat of insolvency that some countries of the euro area are currently facing, a number of related factors seem to be omitted, although they do deserve their share of attention as well. One of these related factors is the link between the indebtedness of national governments and that of families in their respective countries which calls for further examination. However, the most pressing of the topics in this respect, one that may send shivers down our spines, is this simple question: “As the developed countries have already seen a large number of defaults of businesses and banks, with us now therefore perceiving this phenomenon as a standard part of the economy undergoing recession or stagnation while we also get used to countries on the brink of bankruptcy being bought out by extensive aid provided by other countries under non-market conditions, are we to expect future financial collapses to affect families or entire social strata and their budgets on a mass scale ?” As clear evidence exists that the key cause of defaults is the untamed debts , which get out of the control of businesses or governments, we should get alarmed by the fact that private loans, as opposed to business or government loans, have become the most dynamically growing debt type in developed countries over the recent years.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Department of International Business and Economics from the Academy of Economic Studies Bucharest in its journal Romanian Economic Journal.
Volume (Year): 13 (2010)
Issue (Month): 37 (September)
state indebtedness; private loans; debt imbalance;
Find related papers by JEL classification:
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
- H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Radu Lupu).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.