Why should I worry about government debt?
“Why would anyone investing in stock markets fear to invest money in a company which is debt ridden? Simply for the fact, when the next crisis comes that company might be wiped out… Similarly for countries, for international investors the debt is going to show up in the sovereign credit ratings,” said Javadekar.
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“It’s the government who holds the printing machine. In the US, they have printed 40% of their initial money stock. A lot of countries, like Argentina, who have domestic debt go down the inflation route. And, that’s another reason we should worry about debt,” explained Shekhar Tomar, an assistant professor of Economics and Public Policy at ISB.
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