How_Money_Works_-_The_Facts_Visually_Explained

Inflation can

reduce debt

Rising prices

reduce the value

of money,

lightening the

weight of debt

repayment.

❯❯Public/national/sovereign debt

Tot al debt owed by a government.

❯❯Internal debts Money that

is borrowed from within a

government’s own country.

❯❯External debts Money that

is borrowed from abroad.

NEED TO KNOW

DEBT DEBT

GOVERNMENT DEBTS RISE IN WARTIME

War imposes exceptional demands on government spending. Governments

typically finance this by borrowing money. The first ever government debts

were a direct result of borrowing to fund military campaigns.

INFLATION INFLATION

Weak

economy

A struggling

economy is

liable to

default.

DEBT

DEBT

DEBT

DEBT

GOVERNMENT

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GOVERNMENT FINANCE AND PUBLIC MONEY

Managing state finance

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