What is sovereign debt? Discuss the various ways in which government can generate it and what principles should guide this process?

 Sovereign debt - also referred to as government debt, public debt, and national debt - is a central government's debt. Sovereign debt is issued by the national government in a foreign currency in order to finance the issuing country's growth and development. The stability of the issuing government can be provided by the country's sovereign credit ratings which help investors weigh risks when assessing sovereign debt investments.

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