This paper explains why domestic debt composition in emerging economies is risky. It carries out an analysis of the … domestic debt composition, which encompasses maturity mismatches, rollover risk and interest payment contingency. The paper … inflation is lofty, the debt service-to-GDP ratio high, the slope of the yield curve inverted and the investor base narrow …

same shock leads to a cumulative increase of almost 150 basis points after 10 years. The effect of debt on interest rates … is non-linear: only for countries with above-average levels of debt does an increase in debt affect the interest rate …

macroeconomic consequences of government debt accumulation. Focusing on the USA, Germany and Italy over the 1983-2003 period, the … central issue addressed in this paper is how the accumulation of government debt affects long-term interest rates, both … more sustained debt accumulation leads at least temporarily to higher long-term interest rates. This transitory impact also …

This paper investigates the average impact of government debt on per-capita GDP growth in twelve euro area countries … over a period of about 40 years starting in 1970. It finds a non-linear impact of debt on growth with a turning point …—beyond which the government debt-to-GDP ratio has a deleterious impact on long-term growth—at about 90-100% of GDP. Confidence …

The financial crisis of 2008/2009 has left European economies with a sizeable public debt stock bringing back the … determining major public debt reductions. On average, the total debt reduction per country amounted to almost 37 percentage points … of GDP. We estimate several specifications of a logistic probability model. Our findings suggest that, first, major debt …

followed neutral policies based on expenditure rules since the start of EMU. It also calculates the implications for debt … higher expenditure and debt paths compared to a counterfactual neutral expenditure stance. Simple and prudent rules …

This paper studies welfare consequences of a soft borrowing constraint on sovereign debt which is modeled as a … proportional fine per unit of debt exceeding some reference value. Debt is the result of myopic fiscal policy where the government … is assumed to have a smaller discount factor than the private sector. Due to the absence of lump-sum taxation, debt …

This paper investigates the relationship between government debt and labour taxation for a panel of 18 EU countries … positive response of labour taxation to changes in the general government debt and interest expenditure-to-GDP ratios. The …