Disadvantages of Public Debt

National Debt: Definition, Sources, Pros & Cons

National Debt: Definition, Sources, Pros & Cons

National debt or public debt is the total debt a country owes to its citizens, governments of other countries or international financial organizations like the World Bank and International Monetary Fund (IMF).

The debt which a country owes its citizens is known as internal or domestic debt, while the debt owed to foreign governments or international financial organizations is known as external or foreign debt.