Why it matters
High debt means more tax money goes to interest payments instead of services.
National debt in the news
More Economy terms
Economy
Interest rate
The price of borrowing money, expressed as a percentage of the amount borrowed. A central bank sets a benchmark rate that other rates follow.
Economy
Central bank
The public institution that manages a country's currency, money supply and benchmark interest rate, such as the Federal Reserve or the Reserve Bank of India.
Economy
Inflation
The rate at which the general level of prices for goods and services rises over time, usually measured over twelve months.