4 ms·

is it different from governments or individuals?

• neilwilson 6y ago
  Depends which sort of government: sovereign or otherwise (US state, Scotland, Eurozone member). Sovereign government don't really have debt in the sense you would recognise as debt.
  • dwighttk 6y ago
    sure, but they get addicted to something we call debt
    • neilwilson 6y ago
      Only if the private sector gets addicted to something called "wealth". One can't exist without the other. A Treasury or a Gilt is a safe private asset that is much in demand.
  • smabie 6y ago
    Government debt denominated in foreign currency looks pretty much identical to corporate or individual debt.
    • neilwilson 6y ago
      Indeed. That's part of the "otherwise" - the reason why a Eurozone country struggles. They denominate in a currency issued by a foreign entity they don't control.