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The Role And Effects Of Public And Private Debt In The Economy

Author

Listed:
  • Klejda Gabeshi1
  • Genifera Claudia Banica

    (University of Craiova, Romania)

Abstract

The purpose of this article is to carry out a qualitative and quantitative analysis, highlighting the role and effects of government and private loans in the economic development of a country, as well as determining the advantages and disadvantages of these loans. The first part of the paper aims to create an overview on the concepts and particularities of state loans, public debt and budget deficit, emphasizing the role and effects of public debt in the economy, while in the second part will be analyzed the role and effects of private loans in the economy, focusing on how credit activity influences the evolution of an economy. A special role will have the analysis of the impact of the present pandemic on these credits and the challenges it will bring to the economy. This paper aspires to update the state of knowledge of the subject in the academic literature and to capture the attribution of state and private loans as an inevitable process of indisputable importance, which promotes the economic development of a country.

Suggested Citation

  • Klejda Gabeshi1 & Genifera Claudia Banica, 2021. "The Role And Effects Of Public And Private Debt In The Economy," Management Strategies Journal, Constantin Brancoveanu University, vol. 51(1), pages 69-76.
    • Handle: RePEc:brc:journl:v:51:y:2021:i:1:p:69-76
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    References listed on IDEAS

    as
    1. Ross Levine & Norman Loayza & Thorsten Beck, 2002. "Financial Intermediation and Growth: Causality and Causes," Central Banking, Analysis, and Economic Policies Book Series, in: Leonardo Hernández & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.),Banking, Financial Integration, and International Crises, edition 1, volume 3, chapter 2, pages 031-084, Central Bank of Chile.
    2. Carmen M. Reinhart & Kenneth S. Rogoff, 2010. "Growth in a Time of Debt," American Economic Review, American Economic Association, vol. 100(2), pages 573-578, May.
    3. Gross, Dominique M., 2002. "Financial intermediation : a contributing factor to economic growth and employment," ILO Working Papers 993514123402676, International Labour Organization.
    4. repec:ilo:ilowps:351412 is not listed on IDEAS
    5. Luis Angeles, 2015. "Credit expansion and the economy," Applied Economics Letters, Taylor & Francis Journals, vol. 22(13), pages 1064-1072, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Credit Activity; Government Loans; Private Loans; Public Debt;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • H6 - Public Economics - - National Budget, Deficit, and Debt

    Statistics

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