{ "id": "R41838", "type": "CRS Report", "typeId": "REPORTS", "number": "R41838", "active": false, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 425165, "date": "2013-10-28", "retrieved": "2016-04-06T23:14:50.806717", "title": "Sovereign Debt in Advanced Economies: Overview and Issues for Congress", "summary": "Sovereign debt, also called public debt or government debt, refers to debt incurred by governments. Since the global financial crisis of 2008-2009, public debt in advanced economies has increased substantially. A number of factors related to the financial crisis have fueled the increase, including fiscal stimulus packages, the nationalization of private-sector debt, and lower tax revenue. Even if economic growth reverses some of these trends, such as by boosting tax receipts and reducing spending on government programs, aging populations in advanced economies are expected to strain government debt levels in coming years.\nHigh levels of debt in advanced economies arose as an issue for concern for some analysts following the global financial crisis, after decades of attention on debt levels in developing and emerging markets. Four Eurozone countries, Greece, Ireland, Portugal, and Cyprus, have turned to the International Monetary Fund (IMF) and other European governments for financial assistance. Some analysts and policymakers are also concerned about are also concerned about debt levels in other advanced economies. \nTo date, many advanced-economy governments have embarked on fiscal austerity programs (such as cutting spending and/or increasing taxes) to address historically high levels of debt. This policy response has been criticized by some economists as possibly undermining a weak recovery from the global financial crisis. Others argue that the austerity plans do not go far enough, and that more reforms are necessary to bring debt levels down, especially considering the aging populations in many countries. \nIssues for Congress\nIs the United States headed for a Eurozone-style debt crisis? Some economists and Members of Congress fear that, given historically high levels of U.S. public debt, the United States is headed towards a debt crisis similar to those experienced by some Eurozone countries. Others argue that important differences between the United States and Eurozone economies, such as growth rates, borrowing rates, and type of exchange rate (floating or fixed), put the United States in a stronger position. The United States has a long historical record of debt repayment, and bond spreads indicate that investors currently view the United States as far less risky than Greece, Ireland, or Portugal.\nImpact on U.S. economy. The focus of most advanced economies on austerity programs to lower debt levels could slow growth in advanced economies and depress demand for U.S. exports. Financial instability stemming from high debt levels could also impact U.S. markets and financial institutions. \nPolicy options for Congress. Congress is debating proposals to reduce federal debt levels in the United States. Congress could urge the Administration to coordinate fiscal policies multilaterally to avoid simultaneous austerity measures that undermine the economic recovery.", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41838", "sha1": "4e9db36970e84396c698ca4385d1f2191d392a74", "filename": "files/20131028_R41838_4e9db36970e84396c698ca4385d1f2191d392a74.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41838", "sha1": "97f740d9e5892ffd0cc3a160f37e6ac9afb89004", "filename": "files/20131028_R41838_97f740d9e5892ffd0cc3a160f37e6ac9afb89004.pdf", "images": null } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc808587/", "id": "R41838_2013Jan31", "date": "2013-01-31", "retrieved": "2016-03-19T13:57:26", "title": "Sovereign Debt in Advanced Economies: Overview and Issues for Congress", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20130131_R41838_5d2ac85bac3a6fcfbbcf6acffbad1e92ef7d1739.pdf" }, { "format": "HTML", "filename": "files/20130131_R41838_5d2ac85bac3a6fcfbbcf6acffbad1e92ef7d1739.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc86582/", "id": "R41838_2012Feb29", "date": "2012-02-29", "retrieved": "2012-06-15T10:07:48", "title": "Sovereign Debt in Advanced Economies: Overview and Issues for Congress", "summary": "Sovereign debt, also called public debt or government debt, refers to debt incurred by governments. Since the global financial crisis of 2008-2009, public debt in advanced economies has increased substantially. A number of factors related to the financial crisis have fueled the increase, including fiscal stimulus packages, the nationalization of private-sector debt, and lower tax revenue. Even if economic growth reverses some of these trends, such as by boosting tax receipts and reducing spending on government programs, aging populations in advanced economies are expected to strain government debt levels in coming years.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20120229_R41838_2c0ce682e4760882dcc80f629a1e4cc80573899d.pdf" }, { "format": "HTML", "filename": "files/20120229_R41838_2c0ce682e4760882dcc80f629a1e4cc80573899d.html" } ], "topics": [ { "source": "LIV", "id": "Government debt", "name": "Government debt" }, { "source": "LIV", "id": "Public debt", "name": "Public debt" }, { "source": "LIV", "id": "Congress and public relations", "name": "Congress and public relations" }, { "source": "LIV", "id": "Debt", "name": "Debt" }, { "source": "LIV", "id": "Credit", "name": "Credit" }, { "source": "LIV", "id": "Finance", "name": "Finance" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc83966/", "id": "R41838_2011May26", "date": "2011-05-26", "retrieved": "2012-04-27T15:49:45", "title": "Sovereign Debt in Advanced Economies: Overview and Issues for Congress", "summary": "Sovereign debt, also called public debt or government debt, refers to debt incurred by governments. Since the global financial crisis of 2008-2009, public debt in advanced economies has increased substantially. A number of factors related to the financial crisis have fueled the increase, including fiscal stimulus packages, the nationalization of private-sector debt, and lower tax revenue. Even if economic growth reverses some of these trends, such as by boosting tax receipts and reducing spending on government programs, aging populations in advanced economies are expected to strain government debt levels in coming years.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20110526_R41838_411de5fd7c0505c68d4a8643ffa5deb60f15ffb3.pdf" }, { "format": "HTML", "filename": "files/20110526_R41838_411de5fd7c0505c68d4a8643ffa5deb60f15ffb3.html" } ], "topics": [ { "source": "LIV", "id": "Government debt", "name": "Government debt" }, { "source": "LIV", "id": "Public debt", "name": "Public debt" }, { "source": "LIV", "id": "Congress and public relations", "name": "Congress and public relations" }, { "source": "LIV", "id": "Debt", "name": "Debt" }, { "source": "LIV", "id": "Credit", "name": "Credit" }, { "source": "LIV", "id": "Finance", "name": "Finance" } ] } ], "topics": [ "Economic Policy", "Foreign Affairs" ] }