... stable economic growth (steady growth in real GDP), low unemployment, low inflation, and the avoidance of balance of payment deficits and excessive exchange rate. According to John Sloman's Economics2 the economic growth means that there will be more goods and services for the people to consume, the rate of inflation means "the percentage increase in prices over a twelve-month period. The balance of payment shows the country's transactions with the rest of the world, and the exchange rate is the rate at which one national currency changes too another. And at last the unemployment rate is the number of unemployed expressed as a percentage of the labour force." Why are these goals of economies? We will see it through the effect of debt. Debt We should state here that we are talking about government debt not the debt generated by one individual to a bank for example. According to Michael Parkin's ...

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