JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Deficit Financing – Causes, Consequences and Potential Cures
Author(s): Arvind Jadhav, James Neelankavil
Citation: Arvind Jadhav, James Neelankavil, (2011) "Deficit Financing – Causes, Consequences and Potential Cures," Journal of Applied Business and Economics, Vol. 12, Iss. 6, pp. 83 - 99
Article Type: Research paper
Publisher: North American Business Press
Abstract:
The interest in the level of National Debt accumulated by countries has peaked recently due to difficulty in repayment of maturing debt experienced by a number of countries. Current efforts in determining a sustainable level of debt are focused on setting a global standard for sustainable level of debt and annual deficit as per cent of GDP, irrespective of the specific economic structure of a country. This paper attempts to identify specific economic factors that contribute to national debt, identifies a number of early warning indicators and suggests a portfolio of fiscal, financial, and regulatory corrective measures for avoiding default.