Debt risks and risk management of public debt: survey from theory to practice
Phạm Quý Long
Nguyễn Thị Phi Nga
Abstract
In fact looking back since the start of the global financial crisis in 2007-2008, most of the developed countries have high debt ratio significantly higher than normal acceptable threshold is 60%. What has affected the initial scenario and why many different models used a pole tuh not detect risks of public debt until the worst consequences has flared after it is amplified and led to the breakdown in the global debt markets? Until now, many questions still posed whether policymakers had the right tools to prevent and repair the system before the concerns related to the credit risk of public debt occurred in the background economic reality or not? Practice has proved a panacea not only in the risk management of public debt is proved superiority. This article discusses the concept and how comprehensive management of credit risk from the perspective of the analysis combined with the macro-financial aspects that the IMF has warned.