The question attempts to distinguish the growth in national debts from inappropriate fiscal policy. However it is not possible to make such a distinction. Essentially governments are willing to gain popular approval by increasing expenditures while failing to match such spending by increasing taxes since that is seldom popular. Often the increased spending is combined with popular tax reductions. If this is done in periods of low aggregate demand this combination has net benefits, at least in the short run. If fiscal multipliers are large enough and marginal tax rates high enough national debt might even fall. However the combination is also employed when there is ample aggregate demand and that is "inappropriate fiscal policy" and a sure fire way to increase national debt.

The economic crisis is a result of both inappropriate fiscal policies and the unchecked rise of public debt, as these two elements are closely connected and often amplify one another. Fiscal policies that involve reckless government spending or ill-considered tax cuts can lead to larger budget deficits, which in turn elevate public debt levels. When public debt spirals out of control, it may erode investor confidence, increase borrowing costs, and restrict a government’s ability to respond effectively during economic downturns. As a result, the crisis typically leads to heightened instability, rising unemployment, and slower economic growth, making it clear that these factors should not be considered separately; they both play significant roles in the depth and duration of the crisis.

Economic crisis may happen due to economic instability mainly arising from market crashes,financial shocks and debt crisis. When a country is unable to repay the uncontrolled public debt,it can lead to a loss of confidence in the public

The economic crisis can stem from both inappropriate fiscal policy and the uncontrolled growth of public debt, but their impact depends on the specific context. Inappropriate fiscal policy, such as excessive government spending or poorly managed taxation, can lead to economic imbalances. On the other hand, uncontrolled growth of public debt can create long-term financial instability, as debt servicing becomes unsustainable, reducing the government's ability to invest in critical sectors. Often, both factors are interrelated, with one exacerbating the effects of the other.

Dear Researchers, Scientists, Friends,

The question of whether economic crises are primarily caused by inappropriate fiscal policy or by the uncontrolled growth of public debt leading to a collapse of confidence in the economy is not only timely but also of fundamental importance for understanding macroeconomic instability. The issue lies in the intricate interdependence between fiscal mismanagement—such as excessive government spending or the neglect of strategic public investments—and the escalation of public debt that can erode both domestic and international trust in the economy’s sustainability. These dual factors, acting in tandem, often trigger self-reinforcing cycles of capital flight, rising borrowing costs, and eventual recession. Current and future research should therefore explore more deeply the dynamic thresholds at which debt levels begin to undermine credibility, the role of fiscal policy credibility in investor sentiment, and how institutional frameworks can buffer economies from such vulnerabilities. Furthermore, the role of political economy, global capital flows, and rating agencies in amplifying or mitigating these risks deserves further empirical and theoretical scrutiny. I extend my sincere gratitude to all researchers and scholars engaged in this critical discussion, whose contributions help shape informed public policy. I also express my openness to future scientific collaboration in this field and warmly invite you to continue the dialogue, as only through shared inquiry can we uncover sustainable solutions to the challenges of economic stability.

Best regards,

Dariusz Prokopowicz

Economic crises can be caused by both inappropriate fiscal policy and the unchecked growth of public debt—poorly targeted spending or revenue policies can erode confidence and stability, while excessive debt limits fiscal space and increases vulnerability to external shocks, suggesting that both factors are interlinked and context-specific.

Both play a role. Excessive public debt can worsen crises if markets lose confidence, but inappropriate fiscal policy (e.g., austerity during recession) often exacerbates downturns.