How can countries go bust?

1 November 2011 Last updated at 12:24 ET Help

If a country or a government does not have enough money it starts to borrow funds.

When creditors no longer believe that money will get re-paid, confidence in the country falls.

Robert Peston, the BBC's Business Editor explains how a country can go bust.

You can find out more on our special report: The global economy - making it clear

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