Author(s)

Xujia Hui, Duo Zhang, Han Wu

Corresponding Author

Xujia Hui

ABSTRACT

The scale of national debts is closely related to the country’s economic development and people’s living standards. A proper debt scale can promote a country’s economic development, but a high debt level will also lead a country in trouble, even affecting other regions. After the subprime crisis and the European debt crisis, the debt scale of many countries has greatly expanded, and the severity of the debt problem became prominent in one crisis after another. As economic globalization is becoming an inevitable trend in today’s world, the national debt and financial conditions of various countries are becoming more closely related. Therefore, this paper adopts the method of complex networks, calculates the rate of change and correlation through the annual total debt of each country from the macro perspective, studies the mutual influence of the total debt level of each country and region. We have finally drawn the following main conclusions: the countries within the euro area have strong interconnection, and the euro area as a whole has significant impacts on other countries/regions in the national debt market.

KEYWORDS

Debt risk, Complex networks, Correlation