Governments can decide to seek funds directly from capital markets, they can borrow from existing public trust funds such as the Social Security Trust Fund in the United States or they can choose to sell…
In the last few years, however, this has changed dramatically. Rising government debt, and indeed, the economic health of several nations, is now at the center of the public policy debate. The results of the recent national election in Britain, was in part, a reflection of public dissatisfaction with the state of the economy and the growth in the level of debt under the Labour Party’s administration.
As long as deficits are kept at manageable levels and as long as the economy experiences growth, there is no need for concern. The question, of course, is what constitutes “manageable” and what level of economic growth is sufficient to honour the repayment of the debt? Economists prefer to compute a measure of debt as a percentage of Gross Domestic Product (GDP) because it is a reliable indicator that controls for the size of the economy. For example, if the U.K.’s debt is five percent of GDP in a given year and Denmark’s debt ratio is nine percent of GDP, we have a reasonably accurate means of examining the comparative debt level even though the economic output of each country is different.
The International Monetary Fund data shows that during most of the 1990s, the annual debt to GDP ratios for Britain and the United States averaged between three and five percent [http://www.imfstatistics.org]. This was considered acceptable because the economies of the two countries were growing at between four and six percent per year. In 2010, the Congressional Budget Office estimates the debt to GDP ratio for the US at 9.9% of GDP while economic growth is estimated at 3.2 percent [http://www.cbo.gov]. The Statistics Office estimates that the debt to GDP ratio for the U.K. in 2010 at 10.6% of GDP with economic growth forecast at 3 percent [http://www.statsitics.gov.uk]. The current debt to GDP ratios for both countries are clearly unsustainable. Warnings have recently been issued to the U.K. that the country’s credit rating may be lowered over fear ...
Cite this document
(“THE GLOBAL ECONOMY_2 Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/398791-the-global-economy2
(THE GLOBAL ECONOMY_2 Essay Example | Topics and Well Written Essays - 2500 Words)
“THE GLOBAL ECONOMY_2 Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.net/miscellaneous/398791-the-global-economy2.
There are quite a number of studies which suggests the short term and long term impacts of global warming. These predictions are however turning out to be true as many of these impacts are evidently experienced by the common man these days. For instance, there have been notable variations in the climatic patterns all around the globe.
Quantitative easing seems to have become the measure of last resort, when countries, including the biggest powers, are no longer capable of restraining the rapid expansion of the financial and economic crisis. Whether quantitative easing is an effective measure of stopping deflation and encouraging lending is difficult to define.
Basing their statement on this record they claim that the existence and prevalence of global warming is not convincing. On the other hand, independent analyses by different researchers and scientists reveal that the climate of earth has been showing increasingly warmer trends.
It is unfortunate that these inequalities are more than the estate was about 50 years ago. It is unfortunate that from the many that with the changes taking place in the world today, there are higher cases of inequalities than in the previous years (Schaefer 2007, p23).
erspectives of Gore and environmental commentator Gregg Easterbrook pertaining to the possible consequences of climate change and what would be the better option to resolve such an alarming global issue.
There were arguments among scientist, environmental commentators as well
The researcher of the paper "Global Warming" aims to analyse the causes and effects for global warming and gives some suggestions how these problems can be solved. Global warming is caused due to different reasons, a few of which are natural and other are caused by humans. The following causes of global warming are discussed in detail in the paper.
Global warming is a detrimental result usually brought about by human activities that have a negative impact to the environment. Global warming is caused by the substantial upsurge in greenhouse gases such as carbon dioxide, which humans are putting into
I work in the local textile industry which employs the majority of the people in this neighborhood. The pay is barely sufficient to cater for all our needs. Nevertheless, I sometimes go to work with my two sons even though the factory pays them half of what
From the naval war against France in 1798, to present-day Iraq and Afghanistan, global intervention remains an integral part of US foreign policy. The defense of sovereign territory, and the security of its citizens, legitimizes intervention: as in the two World Wars.
1 Pages(250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic THE GLOBAL ECONOMY_2 for FREE!