The recent euro area sovereign debt crisis has shown the importance of market reactions for the sustainability of debt …

growth, exchange rate and interest spreads – put Hungarian debt sustainability at risk. To assess debt sustainability over a … main risks to debt sustainability lie in growth shocks, whose volatility is high in Hungary. This highlights the crucial … role of growth for debt sustainability. The impact of exchange rate depreciation can also be important, especially if …

All practical evaluations of fiscal sustainability that include the effects of population ageing must utilize … ageing on public finances. We show that the likelihood of sustainability risks is significant, and that it would be wise to … sustainability ; stochastic population simulations ; changing demographic forecasts …

This paper critically reviews recent work regarding the sustainability of public debt. It argues that Debt … Sustainability Analyses (DSAs) should be more than mere mechanical simulation exercises. Instead, a DSA should be linked to some …

Fiscal sustainability remains a paramount challenge for small economies with high debt and greater vulnerability to … climate change. This paper applies the model-based sustainability test for fiscal policy in a panel of 16 Caribbean countries … fiscal policy response is not adequate to ensure sustainability at higher levels of debt. We also find that the fiscal stance …

sufficient fiscal buffers during normal and good times. It has also reaffirmed the need for a thorough debt sustainability … narrative shock scenarios; (ii) a stochastic DSA, providing for a probabilistic approach to debt sustainability; and (iii) other … summarised in a heat map, which can provide guidance on the overall assessment of risks to debt sustainability. This method …

use of (country-specific) debt thresholds to assess debt sustainability. We argue that the level of the debt-to-GDP ratio …