This paper assesses debt sustainability in Guatemala. Debt stability has been achieved at very low expenditure levels …

During the pandemic, public debt in Latin America and the Caribbean rose to more than 70 percent of GDP, and countries … are now attempting to lower debt ratios. We analyze past debt reduction episodes and find inflation and the real interest … rate were the most frequent main drivers, while higher growth, fiscal consolidation and debt restructuring were relatively …

This paper explores the effect of inflation supply and demand shocks on government debt. It identifies the shocks using … regressions and local projections suggest that supply shocks lead to persistent increases in government debt, while demand shocks … result in long-lasting declines. Furthermore, high debt levels increase economic vulnerability, amplifying the impacts of …

In this paper, we study the drivers of public debt surges across 172 countries from 1980-2021. We focus on the role of … discrepancies between the annual change in public debt and the budget deficit, referred to as stock-flow adjustments (SFA). The … analysis employs survival methods to model the effect of SFA and other macroeconomic factors on the hazard rate for debt spike …