This paper evaluates the IMF's policy on the use of quantitative limits on public debt in IMF-supported programs (the 'debt limits policy') and proposes a number of modifications. The review is taking place at a time when many countries are experiencing heightened debt vulnerabilities or actual...

The paper develops a simple model of sovereign debt where default both through direct repudiation and through inflation are possible and give rise to (endogenous) constraints on the currency composition and the level of public debt. This set up allows to show that procyclicality of fiscal policy...

We show that fiscal policies reflecting a primary balance response to higher debt in line with historic experience would significantly increase the likelihood of reaching the debt targets of the U.S. administration in the medium term. Deficits and debt are higher under current budgetary...

This study examines the nature of relationship between public debt and economic growth of Ethiopia. To this end, a time series data was collected over the period 1982-2018. Nonlinear ARDL and multiple thresholds nonlinear ARDL models were used to uncover whether the relationship between debt and...

The debt and reserve are playing a pivotal role in the growth and development of national economies. To examine the role of foreign public debt (FPD) on foreign exchange reserve (FER) the study used a panel data by considering 20 Sub-Saharan Africa (SSA) countries by interacting FPD with...

This paper empirically estimates sustainable sovereign debt limits for 27 OECD countries, updating the model in Ghosh et al. (2013). We assess fiscal reaction functions, confirming the fiscal fatigue hypothesis, where gross debt levels exceeding 140-145% of GDP begin to impair a country's...

Seit Dekaden hören wir, Entwicklung hilft: Die südlichen Länder der Welt schliessen zum reichen Norden auf, die Armut hat sich in den vergangenen 30 Jahren halbiert, bis zum Jahr 2030 ist sie verschwunden. Das ist eine tröstliche Geschichte, die von Politik und Wirtschaft gerne bestätigt...