Principles for navigating big debt crises

Ключевые слова

Тематические рубрики

• Economy - Economic crises
• Financial crises
• Debt
• Economic policy
• Financial crises - Case studies

Аннотация

The book shows a template that clarifies how all debt crises proceed, and the basic principles of overcoming them are formulated.Loans are difficult to assess as "good" or "bad", since development in the economic sphere most often occurs precisely at the expense of borrowed money. If the economic benefit from using borrowed funds is sufficient to repay the money, that's good. If the credit conditions strictly require guaranteed repayment of debt with interest, then there will be fewer loans and development will slow down. If the conditions are more flexible, this contributes to greater development, but it can create serious problems that will negate all the benefits created: a "bubble" will form in the economy.