The government debt to pay for it. Economic stabilization The goal of the country's most economically important is to stabilize the income and price levels. The government loans are a type of financial instruments used to solve the economic problems
in today's economy is mostly open. International Investment activity is free and economy. The movement of foreign currency. In any year there is a balance of payments surplus, it will increase international reserves. But any year that the deficit International reserves had to be taken out of its deficit, which if well for a long time it was used until the reserve is less than normal, which would jeopardize the economic security of the country, the government had to borrow money. to serve as the international reserve. But in some countries, citizens are saving money too, just to make a little money in the economy. This may cause deflation, the government must help resolve. The indebtedness of the savings of the citizens of this investment. To move the capital did not take advantage. Causing economic productivity and help prevent domestic funds moving out of the country. This helps maintain a high level of international reserves is another way to reduce government borrowing at a time, sometimes when it is time to restore the state did not have enough money to pay the debt. So to borrow new debt for old debt in circulation, according to the contract and schedule. In order to maintain the credit of it.
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