What is government debt? It is a sum of money borrowed by a government from financial markets, banks, and investors. This debt results from an imbalance between a government's revenues and expenditures. As a result, the government must borrow money to finance its infrastructure, social model, investments, and so on. These loans are represented by debt securities, which are documents recording the amount lent, the interest, and the time required to repay the loan.
However, we can see that most governments don't make profits. Why is this the case, and how do they repay their debts?
