interest payments on debt are not to explode. …

An expression for the welfare cost of a marginal increase in the public debt is derived using a simple AK endogenous … that a debt-financed public project needs in order to generate a net social gain. The model predicts an increase in the … public debt ratio will have little effect on the optimal public expenditure ratio and that most of the adjustment will occur …

same shock leads to a cumulative increase of almost 150 basis points after 10 years. The effect of debt on interest rates … long-term interest rates. In simple static specifications, a one-percentage-point increase in the primary deficit relative … to GDP increases contemporaneous long-term interest rates by about 10 basis points. In a vector autoregression (VAR), the …

context of highly dollarized economies, high levels of sovereign debt, severely limited fiscal resources, or combinations …

approaches that are useful for assessing whether countries exchange rates seem broadly appropriate. One involves the calculation … balance framework, focuses on the extent to which prevailing exchange rates and policies are consistent with simultaneous …