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 …