According to the IMF, the current public debt makes up nearly 40 percent of the global debt, marking the highest share … Extreme Bounds Analysis (EBA) method, our study reveals that fluctuations in the IMF credit to external debt ratio can be … attributed to changes in the total reserves to external debt ratio, where this relationship is statistically significant and …

debts. The government issues debt and can either inflate away its domestic debt or default on its external component. Under … a discretionary policy, the existence of domestic debt creates a costly inflation bias. On the other hand, the cost of … foreign debt increases with the quantity of debt issued due to the increasing likelihood of default. This tradeoff between …

The objective of this paper is to assess whether external debt makes a difference for public debt stabilization, where … external debt is considered through the non-residents' holdings according to a Balance of Payments perspective. The analysis is … empirical and considers the case of Italy, one of the world's largest debt issuer. We study the potential effects on the …