Financial markets are not responsible for government over-borrowing, any more than your bank forces you to take out a car loan unless you want to. It is nevertheless true that investment banks will help governments to borrow if the latter want to. In the end, it is always the citizen who pays the penalty. If we wanted to stop oiur government from borrowing excessively, what could we do that might actually work in the long term? Make sure to give some concrete evidence!

Answer rating: 100% (QA)

To address excessive government borrowing in the long term several measures could be implemented 1 Fiscal Responsibility Legislation Enact fiscal resp... View the full answer