I analyze how lack of commitment affects the maturity structure of sovereign debt. Governments balance benefits of default induced redistribution and costs due to income losses in the wake of a default. Their choice of short- versus long-term debt affects default and rollover decisions by...

If a nation fails to satisfy its intertemporal budget constraint (IBC) then, like a government or a household, either it will become insolvent or it can consume more of its income. The main purpose of this paper is to establish necessary and sufficient conditions for a nation to satisfy its IBC,...

It is argued that debt service burden has a negative impact on investment and capital accumulation. The main reason is that the greater percentage of reserves (foreign currency) goes to meet debt service and there will be a reduction in external capital because of a decrease in creditworthiness....

Turkiye’de, borc stokunun yapisi incelendiginde, vadesinin kisa; degisken faizli, doviz cinsi/ dovize-endeksli senetlerin stok icerisindeki payinin ise yuksek oldugu gorulmektedir. Bu yapi, faiz orani ve doviz kuru oynakliklarina karsi borc servisi/ borc stokunu riskli hale getirmektedir. Bu...

The key rationale for public sector outsourcing is normally to improve public sector delivery as well as the state of public finances as defined by the Maastricht criteria. Like the underlying motives, the ensuing effects may also be diverse, however: increased business efficiency is generally...

This World Bank Discussion Paper brings together two contributions on external debt issues. The first paper discusses the insurability of sovereign debt against default. The second paper reviews numerous studies that have been conducted over the years to identify the variables that could predict...

Can higher inflation diminish the government debt and contribute to financing the budget deficit? And how do these public finance concerns influence inflationary expectations?