Browsing: Money Matters

To everyone that knows the importance of foreign reserve, there is indeed a serious cause for concern. First it is the buffer reserve we use to balance out payments against international trade. It is the determinant of our national exchange rate or the strength of our national currency. It is also what creditors use as yardstick to give us loan.

But there is huge difference between national debt and family debt. What most people don’t know is that national debt is not like family finances. The difference is that countries have the central bank to manipulate their economy. They have more financial and monetary flexibility to get out of financial troubles.