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 …

When it comes to assess the sustainability of fiscal policy and public debt in Andean countries, two idiosyncratic …

Governments can issue public debt for both good and bad reasons. The former include intertemporal tax smoothing, fiscal … of time inconsistency of public finances and minimize debt accumulation by setting debt limits. Despite the theoretical … that fiscal rules have on public debt, this paper studies the effect of different types of rules on debt behavior and their …