This paper quantitatively assesses the effects of inflation shocks on the public debt-to-GDP ratio in 19 advanced … impulse responses by local projections both suggest that a 1 percentage point shock to the inflation rate reduces the debt … higher inflation, even if accompanied by some financial repression, could reduce the public debt burden only marginally in …

Debt vulnerabilities in low-income countries have increased substantially in recent years. Since 2013, median … government debt has risen by about 20 percentage points of gross domestic product and increasingly comes from non … financial conditions given high levels of external debt, lack of fiscal space, low foreign currency reserves, and undiversified …