Debt crisis

Debt crisis is a situation in which a government (nation, state/province, county, or city etc.) loses the ability of paying back its governmental debt. When the expenditures of a government are more than its tax revenues for a prolonged period, the government may enter into a debt crisis. Various forms of governments finance their expenditures primarily by raising money through taxation. When tax revenues are insufficient, the government can make up the difference by issuing debt.[1]

Public debt as a percent of GDP, evolution for USA, Japan and the main EU economies.
Public debt as a percent of GDP by CIA (2012)

A debt crisis can also refer to a general term for a proliferation of massive public debt relative to tax revenues, especially in reference to Latin American countries during the 1980s, the United States and the European Union since the mid-2000s, and the Chinese debt crises of 2015.[2][3][4][5][6]

  1. ^ Bondarenko, Peter (September 2015). "Debt crisis". Encyclopædia Britannica. Retrieved 29 March 2019.
  2. ^ Jetin Duceux, Alice (December 2018). "An overview of Chinese Debt (Part 1)". CADTM.
  3. ^ ""Europe Banks Selling Sovereign Bonds May Worsen Debt Crisis" - SFGate". Archived from the original on 10 May 2020. Retrieved 19 November 2011.
  4. ^ "Who is Handling Debt Crisis Better, United States or Europe" - US News [1]
  5. ^ Marsh, Bill (May 1, 2010). "Europe's Web of Debt". The New York Times.
  6. ^ "How's the Argentina Recovery Coming Along?" by Tyler Cowen