Congress has expressed interest, one way or the other, in a balanced-budget requirement for the past six decades. Yet despite numerous attempts, the legislative body has never passed a constitutional balanced-budget amendment. Most of the analysis of why we don't yet have a constitutional...

Why do countries tend to repay their domestic and external debt, even though the legal enforcement of the sovereign debt contract is limited? Contrary to conventional wisdom, we argue that temporary market exclusion after default is costly. When the domestic financial market is characterized by...

Why do countries tend to repay their domestic and external debt, even though the legal enforcement of the sovereign debt contract is limited? Contrary to conventional wisdom, we argue that temporary market exclusion after default is costly. When the domestic financial market is characterized by...

Why do countries tend to repay their domestic and external debt, even though the legal enforcement of the sovereign debt contract is limited? Contrary to conventional wisdom, we argue that temporary market exclusion after default is costly. When the domestic financial market is characterized by...

Debt servicing is a concern because full-employment is unsustainable except the structure of capital reach a certain threshold. This study examined the impact of to external debt on unemployment in Nigeria through the investment channel. The study adopted a system of equation approach where...

How important is the planning horizon of households for the effects of fiscal plans? We address this question through the lens of a New-Keynesian model where households are boundedly rational and plan over a finite number of periods. We show that the planning horizon affects the medium-run...

Bulgarian Abstract: Стратегическа задача е да се определи какъв относителен дял да заемат краткосрочният и дългосрочният държавен дълг в дълговия портфейл на дадена...

The public sector, in carrying out its operations, often incurs foreign currency denominated liabilities and, as such, is exposed to exchange rate fluctuations that could affect the value of public debt to GDP ratios over time. This paper shows that converting foreign currency denominated flows...

In this paper we make use of the Blinder-Oaxaca decomposition to examine how the quality of budget institutions affects fiscal performance – Primary Balance and Public Debt – in sub-Saharan Africa. To organize our approach, we categorize sub-Saharan Africa countries according to the two main...

The sustainability of fiscal deficits has been receiving increasing attention from economists. The issue is paramount for the newly formed Euro area and this is one of the motivations of the paper. In order to assess the sustainability of budget deficits in the Euro area, stationarity tests for...