British Govt. Borrowing

Mike Kent | 06:48 Tue 28th Oct 2008 | Business & Finance

4 Answers

Who/which countries is the British Govt. borrowing these huge sums of money??

mortgage payment break

Meaning of a phrase

Answers

1 to 4 of 4

Best Answer

No best answer has yet been selected by Mike Kent. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.

factor-fiction

I don't think they are borrowing from other governments/countries. I think they are borrowing from the taxpayer and from the money markets. And maybe printing some too (which will affect money supply and hence inflation).
Hopefully an economist on AB can provide a more authoritative answer?

rov1200

The usual method is to issue gilts. This method is already operational and has been for many years for institutions and individuals alike.

Mike Kent

Question Author

Govt. Bonds & Gilts - thanks

factor-fiction

So who is buying these bonds and gilts issued by the UK governement?
Is it UK savers- if so, are they simply using money that was being saved elsewhere?
I guess it's more likely to be institutions such as pension funds and insurance companies who are buying ilts rather than shares at the moment- but shouldn't they be buying shares instead now that prices are cheap and gilt rates are falling?
If it's overseas investors buying our gilts, where are they getting the money from and aren't thier own overnments also selling gilts because they are in the same position as the UK?

1 to 4 of 4

Do you know the answer?