This note provides operational guidance for the use of the Sovereign Risk and Debt Sustainability Framework (SRDSF …), which replaces the Debt Sustainability Framework for Market Access Countries. The SRDSF introduces improvements in … organization, methodology, transparency, and communication when analyzing public debt issues in countries that mainly finance …

Debt levels, both private and public, were already at record highs before the Covid-19 pandemic, and surged further in … ongoing debate by examining what happens to economic growth after debt surges. We apply a local projection method to a new … dataset of debt surges in 190 countries between 1970 and 2020. Our results show that the relationship between debt surges and …

This paper surveys the literature on sovereign debt from the perspective of understanding how sovereign debt differs … from privately issue debt, and why sovereign debt is deemed safe in some countries but risky in others. The answers relate … to the unique power of the sovereign. One the one hand, a sovereign has the power to tax, making debt relatively safe; on …

Poverty Reduction and Growth Trust-Guidance Note on New Enhanced Safeguards for Debt Sustainability and Capacity to …

did not prevent deficits and debt ratios that have threatened the stability of the monetary union in the past and that … was most visible during the decade following the euro area sovereign debt crisis, when structurally low real interest … consolidation to the level and horizon of fiscal risks, as identified by debt sustainability analysis (DSA) using a common …

) that stipulate a suspension of debt payments when the government faces liquidity shocks in the form of an increase of the … risk more attractive for the government. In contrast, cocos that stipulate debt forgiveness when the government faces the …

We use a new, comprehensive data set on the sovereign debt investor base to document three novel empirical facts: (i …) sovereign debt is repatriated - that is, shifted from external private to domestic investors - prior to sovereign defaults; (ii … nature of defaults matters: external investors do not leave during preemptive debt restructurings. We further show that …

This paper provides new empirical evidence of the impact of an unanticipated change in public debt on real GDP. Using … public debt forecast errors, we identify exogenous changes in public debt to assess the impact of a change in the debt to GDP … ratio on real GDP. By analyzing data on gross public debt for 178 countries over 1995-2020, we find that the impact of an …

Recommended readings (Machine generated): 1. James E. Meade (1958), 'Is the National Debt a Burden?', Oxford Economic … Burden of the National Debt', Economic Journal, 71 (284), December, 730-55 -- 3. Peter A. Diamond (1965), 'National Debt in a … Neoclassical Growth Model', American Economic Review, 55 (5), December, 1126-50 -- 4. Olivier J. Blanchard (1985), 'Debt, Deficits …