We develop a two period model to investigate what makes the promise to repay public debt credible. We explor a … minority groups. In this sense, the very fact of issuing public debt creates a constituency in favour of repaying it and, under …

if fiscal policy is passive, that is, guarantees public debt stabilization irrespectively of the inflation path, monetary … unfeasible. For any given target inflation rate, there exists a threshold level of public debt beyond which monetary policy … independence is no longer possible. In such circumstances, the dynamics of public debt can be controlled only by means of higher …

model in which altruism is limited. The effects of public debt are studied under two different types of assumptions. The … firms. This leads to the "traditional" effects of public debt: it increases current consumptions and decreases future …

pension replacement rates and repaying public debt through a lower ratio of non ageing-related outlays to GDP, c) raising the … regime, a health care system, non ageingrelated public spending and a stock of debt to be repaid) is used to compare the … macroeconomic impact of four scenarios: a) increasing taxes to finance unchanged pensions and repay public debt, b) lowering future …

, anchoring expectations. Fiscal policy has been guided by debt sustainability considerations, delivering primary budget surpluses … that have often exceeded the end-year targets. Nevertheless, while the public debt-to-GDP has been reduced, it remains high … continue to reduce the public debt overhang while improving the quality of fiscal adjustment, which has so far been underpinned …

This paper reviews some of the difficult challenges facing debt managers in the years to come. In countries … experiencing a rapidly diminishing gross debt, particularly the United States, this raises the issue of whether private …-sector securities can serve as a substitute for the traditionally important government debt market. In the euro area, following the …

: Large initial deficits and high interest rates have been important in prompting fiscal adjustment and also in boosting the …

. Logit regression analysis confirms that when deficit rules or, to a lesser extent, debt thresholds tend to become more …

The primary balance has influenced the unit costs of debt servicing in 10 postsocialist members of the EU. The effects … of the GDP growth and the inflation are equally robust and significant. The coefficients of lagged debt are at variance … countries could stabilize their debt-GDP ratio by running a primary deficit. But comparing the level of investment with profits …

last years, the share of off-budget institutions in overall public investment, employment, and debt is rising over time …