, while external debt worsens income inequality, win-win trade liberalization policies could act as instruments for poverty … (AfCFTA), cutting down on external debt financing of major developments projects, rolling out more poverty alleviation … economies through a low tariff regime, in addition to external debt financing of major projects and social intervention programs …

We propose a theory of indebted demand, capturing the idea that large debt burdens by households and governments lower … accommodative monetary policy and deficit spending—generate a debt-financed short-run boom at the expense of indebted demand in the … future. When demand is sufficiently indebted, the economy gets stuck in a debt-driven liquidity trap, or debt trap. Escaping …