A DEBT CRISIS OF THE STATE

It is generally known that many states all over the world have currently a big problem - a big debt of the state. There are a various approaches to this problem and there are also various options how to resolve it. Therefore, this article describes and evaluates the possibilities of solving the debt crisis of the state by empirical analysis of some relationships between debt of the state and other economic indicators. The debt level, often scaled by the country's GDP, is one of the most commonly used indicators of a country's ability to face its obligations. But in fact there is no certain percentage of GDP where the debt crisis occurs. This is the reason why is in the article also created and suggested a method how the debt crisis of the state can be measured. It concerns the hypothesis that the excessive interest payments which are connected with excessive debt means that the money are not returned to the economic cycle mechanism of the country which can be the cause of the crisis. The aim is to contribute to the discussion concerning the serious problem - the debt crisis of the state.