Get the answer of: Does an Internally-Held Public Debt Shift Burden to Future Generation? Some economists have argued that public debt is invariably a burden on the future generations. They argue that the 'burden' of the debt refers to the problems that arise when it is repaid. They feel that when the government borrows the present generation escapes the burden. [...]
To study the effects of public debt we have to first draw a distinction between internal debt and external debt. When a government borrows money from its own citizens by selling bonds or long-term credit instruments a internal debt is created. It is owed by a nation to its own citizens. So, it may apparently seem that an internal debt [...]
The following points highlight top nine methods used for the redemption of public debt. The methods are: 1. Refunding 2. Use of Budgetary Surplus 3. Terminal Annuity 4. Sinking Fund 5. Debt Conversion 6. Statutory Reduction in the Rate of Interest 7. Additional Taxation 8. Capital Levy 9. Using Trade Surplus. Method # 1. Refunding: The government often issues new [...]