Government domestic debt in developing countries has been growing rapidly, surpassing foreign debt between 1994 and 2004. This growth is due to financial crises, central bank debt, and increased government interest in issuing domestic debt. The main risk of large government debt, whether domestic or foreign, is its size relative to a country's financial and political institutions. While domestic debt can benefit the private capital market, it also poses risks such as sudden drops in demand and transferring risks to banks. Central bank debt growth can distract from maintaining price stability.