High levels of government debt can lead to political instability due to concerns about the government's ability to repay its obligations and the potential for economic crises.

Political instability caused by high government debt can lead to social unrest due to public dissatisfaction with the government's handling of the economy and concerns about the future.

High levels of government debt can reduce the government's ability to borrow additional funds, limiting its capacity to respond to economic shocks through fiscal stimulus or other countercyclical policies.

The relationship between government debt and economic growth is complex and depends on factors such as the level of debt, the composition of debt, the use of borrowed funds, and the overall economic conditions.

Reducing the risk of political instability caused by high government debt may involve a combination of strategies, including implementing austerity measures, increasing taxes, and restructuring debt.

Government debt monetization, the process of creating new money to finance government spending, can lead to hyperinflation if not managed properly.

Government debt monetization can lead to a loss of confidence in the currency, resulting in depreciation and a decline in its purchasing power.

The relationship between government debt and interest rates is complex and depends on factors such as the level of debt, the composition of debt, the economic outlook, and the actions of central banks.

Reducing the level of government debt may involve a combination of strategies, including implementing austerity measures, increasing taxes, and promoting economic growth.

Government debt default, the failure to meet obligations on government debt, can lead to a financial crisis, characterized by a loss of confidence in the government's ability to repay its debts.

Government debt default can lead to social unrest due to public dissatisfaction with the government's handling of the economy and concerns about the future.

The relationship between government debt and public trust is complex and depends on factors such as the level of debt, the composition of debt, the economic outlook, and the actions of the government.

Reducing the risk of government debt default may involve a combination of strategies, including implementing austerity measures, increasing taxes, and restructuring debt.

Government debt overhang, a situation where the level of debt is so high that it becomes difficult to repay, can lead to a debt trap, where the government is unable to borrow more funds to service its existing debt.

Government debt overhang can lead to economic stagnation due to the government's inability to invest in productive activities and the crowding out of private investment.