Debt levels have surged since the mid-1990s and have reached historic highs across the OECD. High debt levels can … create vulnerabilities, which amplify and transmit macroeconomic and asset price shocks. Furthermore, high debt levels hinder … shocks. The empirical evidence suggests that when private sector debt levels, particularly for households, rise above trend …

OECD and emerging economies over the past four decades. For example, a bias in gross external liabilities towards debt has … stability by shifting external liabilities from debt towards FDI. In contrast, tax systems that favour debt finance over equity … finance have undermined stability by increasing the share of debt, including external debt, in corporate financing. Targeted …

Japan’s public debt ratio, currently about 230% of GDP. The findings indicate that fiscal consolidation amounting to around … productivity growth, as well as inflation gradually rising to 2% thanks to unconventional monetary policy measures, the debt ratio …

How does debt affect macroeconomic stability? The answer to this question has important implications, because both … public and private debt levels have reached historic highs across the OECD. While accumulating debt can help smooth real … activity, at high levels debt creates weaknesses in corporate, household and government balance sheets. High debt levels can …

Using a large panel of OECD countries this paper studies the link between debt and macroeconomic stability by comparing … between debt and economic growth has been extensively studied in the literature, only little attention has been paid to the … impact of debt on volatility and higher moments of output growth distributions. This paper fills in this gap. Debt …

planned, with a view to reducing the debt burden below 60% of GDP by 2020. Austrian fiscal policies have tended to be pro …

by the ratio of debt service to tax receipts and expected fiscal deficits. Moreover, there is evidence to suggest that …

level of government debt, favourable outlook for output growth, and long-term fiscal costs of ageing which are estimated to … needed pension reform, would have substantial longer-term costs in terms of higher taxes and additional debt service costs …, including an increase in the risk premium paid on government debt. In addition, this would heavily skew the tax burden towards …