IMPROVING THE STATE REGULATION METHODS OF DEBT CRISES
Abstract
Debt crises pose significant challenges to national economies, often leading to severe economic downturns, social unrest and long-term developmental setbacks. This research paper explores the nature of debt crises, their causes and the implications for state regulation. It critically evaluates existing methods of state regulation aimed at managing debt crises, including fiscal policies, monetary policies, restructuring mechanisms and international cooperation. Furthermore, the paper proposes innovative strategies to enhance the effectiveness of state regulation in preventing and managing debt crises. By adopting a comprehensive, proactive and adaptive approach, this study aims to provide actionable recommendations for policymakers to foster economic stability and resilience. This empirical research paper aims to analyze existing methods of state regulation of debt crises and propose improvements that can enhance their effectiveness. The article analyzes the situations related to the debt crisis in the world using several methodologies. The main methods used are comparative analysis and analysis of the development of events. The consequences of the debt crisis observed in some countries of the world are studied and recommendations for future activities are given. In particular, the debt crisis observed in Latin American countries in the 1980s and the sovereign debt crises observed in European countries in the 2010s were studied. Their overall impact on the economy was assessed and relevant conclusions were drawn. Political Constraints, Economic Uncertainty, Globalization and External Shocks, and The Role of Financial Institutions are cited as factors that directly affect the introduction of effective methods of managing debt crises in the country. Proposed Improvements to State Regulation Methods as directions for improving debt management methods used in practice today, Enhancing Fiscal Discipline and Responsibility, Strengthening Monetary Policy Frameworks, Developing Comprehensive Debt Restructuring Frameworks, Promoting Financial Literacy and Transparency, Emphasizing Data-Driven Decision Making, The Fostering International Collaboration are shown.
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