This paper uses an instrumental variable approach to study whether public debt has a causal effect on economic growth in a sample of OECD countries. The results are consistent with the existing literature that has found a negative correlation between debt and growth. However, the link between...

In this paper we look at the effect of International Monetary Fund (IMF) lending programs on banking crises in a large sample of developing countries, over the period 1965-2010. The endogeneity of the Fund intervention is addressed by adopting an instrumental variable (IV) strategy, in which the...

Microsavings contribute to smooth consumption, face emergencies and increase welfare of poor households and to empower and foster investment opportunities for poor women. We take advantage of an original survey submitted to 98 Bangladeshi women member of Hitaishi, a small Dhaka-based...

This paper surveys the recent literature on the links between public debt and economic growth in advanced economies. We find that theoretical models yield ambiguous results. Whether high levels of public debt have a negative effect on long-run growth is thus an empirical question. While many...

Recent shifts in the global debt relief architecture has meant that countries with superior institutions are often rewarded with increasinf aid and debt relied, an incentive for debtor countries to strategically improve their institutions prior to seeking debt relief. This paper contributes to...

Official (government-to-government) lending is much larger than commonly known, often surpassing total private cross-border capital flows, especially during disasters such as wars, financial crises and natural catastrophes. We assemble the first comprehensive long-run dataset of official...

Official (government-to-government) lending is much larger than commonly known, often surpassing total private cross-border capital flows, especially during disasters such as wars, financial crises and natural catastrophes. We assemble the first comprehensive long-run dataset of official...

Theoretical models predict that countries with unchanged long-run savings preferences will respond to debt relief by running up new debts or by running down assets. And there are some signs that incremental debt relief over the past two decades has fulfilled those predictions. Debt relief is...

This note was produced as background to the IEO evaluation of the IMF and Aid to Sub-Saharan Africa. It sets out the technical analysis underpinning the evaluation's estimate for spending and absorption ratios and elaborates further on its scope, rationale and limitations. It also presents more...

The United States is the largest contributor to the International Monetary Fund and the World Bank, providing resources in exchange for voting power in these international financial institutions (IFIs). While the Treasury Department manages U.S. participation in these institutions, Congress...