A Comparative Analysis of the Formation Path and Impact of Debt Risk in the US and Europe

Through the comparison of the sovereign debt risks of the two economies, this paper focuses on the analyses of the risk formation path and the fiscal sustainability at the macroeconomic level. Due to the differences in the external resources and coping measures that affect the risk formation of the two economies, as well as the differences in the institutional roots that lead to the rise of debt risks, the impact mechanism of sovereign debt risks is also different. Finally, theoretical and policy implications are given.