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The Causes, Impacts, and Solutions of the Global Debt Crisis
- 1 HSD Foreign Language School Lance Academy, Huzhou, Zhejiang, China
- 2 JIAN YE INTERNATIONAL SCHOOL, Zhengzhou, Henan, China
- 3 JIAN YE INTERNATIONAL SCHOOL, Zhengzhou, Henan, China
* Author to whom correspondence should be addressed.
Abstract
The global debt crisis, typified by rising government debt, jeopardizes global economic stability. This paper focuses on the key factors, which include expansionary fiscal policies, inefficient tax structures, and monetary policy issues such as high interest rates. The consequences are widespread, including unemployment, currency depreciation, financial market instability, and long-term economic stagnation. The research identifies inequities, disturbed global trade factors, and the worsening of poverty as consequences that last. Proposed solutions include progressive taxation, fiscal discipline, strategic monetary policies, and more international collaboration to alleviate fiscal imbalances and foster long-term recovery. This research provides actionable strategies to mitigate the crisis, emphasizing progressive tax reforms, sustainable fiscal and monetary strategies, and international cooperation, offering pathways for governments and institutions to achieve economic recovery and long-term debt sustainability.
Keywords
Economic Inequality, Sovereign Debt, Debt Sustainability, Financial Crises
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Cite this article
Hu,H.;Huang,J.;Wang,K. (2025). The Causes, Impacts, and Solutions of the Global Debt Crisis. Advances in Economics, Management and Political Sciences,158,13-21.
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