What Is The Role Of National Governments In Stimulating National Economic Growth?

The Global Debt CrisisNameInstitutionThe Global Debt CrisisIntroductionDebt crisis refers to a state in which vast amounts of arrears are owned by some individuals, companies or nations and threatens to overcome them. Hence this individuals or organizations become incapable of servicing their debts. Consequently, this situation threatens the stability of larger organizations. Also, debt crisis denotes a condition where a state inputs a massive percentage of its foreign exchange in paying off debts and again borrows more loans to meet the essential responsibilities of its economy. The cost of paying off debts has become a problem to many countries over the past years. The debt crisis of most countries has led to under development in such nation's leading to most of the citizens languishing in poverty. This paper seeks to explain the role of organizations such as the banks, central banks, World Bank and international monetary funds have assisted in the overwhelming debt crisis as well as the part played by the national government of Saudi Arabia in improving its economy.The debt crisis was first realized in the 1970's when oil prices had increased leading to a sluggish growth