Reflect on the factors that contribute to public and private debt; what are the main determinants of foreign debt? Provide some data on the debt structure (share of public and private debt) of crisis economies (like Greece, Spain, Portugal). Compare debt structure of emerging economies with that of advanced economies, such as the United States. What are the differences among different regions including BRICs, South Asia, and Latin America? How can countries succeed in debt management; what are the strategies that could control public debt at a desirable level?
Include in your analysis the following:
- Explain the debt structure for a developed country such as United States and explain why developing countries with lower level of debt to GDP have debt problems whereas U.S. with higher level of debt to GDP doesn’t have a debt problem? Outline the importance of debt maturity.
- Explain the importance of government policies in managing debt crisis and debt prevention
- Provide a roadmap to avoid foreign debt crisis in the future
Support your paper with at least three (3) resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included. Your paper should demonstrate thoughtful consideration of the ideas and concepts that are presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.
Length: 5-7 pages (not including title and reference pages).