Public Debt Management During Economic Crisis

During a crisis, public debt management is very important because the management methods of a touch-and-go economic situation on a national level are determining the financial wellbeing of a nation. During a crisis, the national wealth is decreasing, and during economic growth, it increases both macro economical and for each individual. As we are talking about a global economy, budgetary deficits are present in every state’s economy, through a contagious economic phenomenon. Thus, during economic growth, the GDP level is high and during economic decrease, the GDP is decreasing. Public debt management policies influence both the foreign exchange rate and the GDP. Foreign direct investments, that generate the increase of employment, and lead to sustainable economic growth, have suffered during the economic crisis, and public debt is much more severely experienced by the population.