"What level of public debt leads to bankruptcy"

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kotarski 19 5Zagreb, 20th May 2015 – Within the first semester of the study "Management in the institutions of the state" the course "Economic Policy" was completed. All lectures in this course were held under the baton of Professor Kristijan Kotarski from the Faculty of Political Science iz Zagreb.

Kotarski focused his last lecture on explaining the policy of public debt, which is highly relevant for Croatia and other EU countries that are struggling with high rates of indebtedness and limited possibilities of financing public expenditure. Below he emphasized that there is no simple answer to the question what is the worrying level of public debt, because it depends on a number of objective factors and the perception of economic actors.

"Besides objective indicators such as the property of the state, interest rates and the capacity for growth, public debt sustainability depends on a complex interaction of key stakeholders (businesses, taxpayers, savers, banks, financial markets, trade unions, politicians) who by the result of their actions lead to contraction or expansion of the economy", said Kotarski.

We thank professor Kotarski, who explained the main concepts and elements of political economy and on his excellent lectures.