How to smoothen the financial cycle in a country?

[Good-Person]

Financial cycles may involve ups and downs faced by a country. A country may experience bad cycles when they have a limited amount of cash reserves and foreign currencies. This may also lead to uneven financial cycles, so how can a country eliminate this problem?

 

[glitch]

By not printing money and spending said money on countless wars that only hurt the local economy and put stress on their own people. That could be a start!

 

[Henrywrites]

They need to make policies that help businesses. You want a situation where business owners are confident of hiring more people who can actually do the work. Once they are at the point of having more people being busy at work, things will likely improve.

 

[Nomad]

Corruption is one of the major issues for a country for being into financial crisis. Therefore, in order to improve finances, the country needs to create strong law against corruptions. Another major reasons is debt, a country should always avoid debt. Third reasons is trade deficit. When a country imports more and exports less, it will also be in financial crisis.

 

[Riberet19]

Corruption is one of the major issues for a country for being into financial crisis. Therefore, in order to improve finances, the country needs to create strong law against corruptions. Another major reasons is debt, a country should always avoid debt. Third reasons is trade deficit. When a country imports more and exports less, it will also be in financial crisis.

The problem is that no country can escape debt in the financial system that we are in, all countries are more or less indebted, the ones that are less are the ones that tend to work the best, but our economy works on debt, and it is something a bit unsustainable, the economy will have a breaking point at some point in our history from which we will have to completely rebuild it.

 

[Nomad]

That's true, even the United States has debt. Foreign debts cannot be escaped, especially by developing countries and poor economies. However, there are things that a country can implement to reduce debt, increase per capita income, and improve national economy.

 

[Riberet19]

That's true, even the United States has debt. Foreign debts cannot be escaped, especially by developing countries and poor economies. However, there are things that a country can implement to reduce debt, increase per capita income, and improve national economy.

That is very true, a country can live with a sustainable debt over time, also reducing or keeping its debt ratio stable thanks to the increase in GDP as you say, the problem is that almost all countries tend to get this out of hand because they end up spending more public money than they have and end up in deficit, And here we come back to one of the key points of your first post, corruption.

 

[Monster Masterpiece]

That is very true, a country can live with a sustainable debt over time, also reducing or keeping its debt ratio stable thanks to the increase in GDP as you say, the problem is that almost all countries tend to get this out of hand because they end up spending more public money than they have and end up in deficit, And here we come back to one of the key points of your first post, corruption.

The main problem of the countries is that they don't have sufficient foreign currency so goes to getting bank loans which leads to be out of funds during the year because all income is to pay out the debts.