ECON 1115 Lecture Notes - Lecture 8: Fiscal Policy

• School: Northeastern University
• Department: Economics
• Course: ECON 1115
• Professor: Peter Simon

Document Summary

National debt is owed to social securities, china (. 3 trillion), banks, us federal reserve and all other foreign nations. Us debt is more than gdp bankruptcy is possible. Debt allotted is based on death, since the us government will exist forever they can keep going into debt indefinitely. 50 countries went into debt after wwii because they borrowed money (debt) in the form of the major currency (dollar/euro). Therefore they can"t print more currency to pay off debts. Cost to national debt: 3% - 4% (interest) of gdp, Solutions to national debt monetising debt .