Academic literature on the topic 'Economic consequences of public debt'

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Journal articles on the topic "Economic consequences of public debt"

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HUSIEV, Artem. "State debt management in the context of Ukraine's economic development." Economics. Finances. Law, no. 5 (May 29, 2020): 21–25. http://dx.doi.org/10.37634/efp.2020.5.3.

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The paper explores the theoretical and methodological basis of the concept of public debt management. The relationship between the problem of public debt and economic development of the country has been revealed. The dynamics of Ukraine's public debt for the period 2010-2019 have been analyzed. The default as a means of state debt policy has been investigated and its main economic consequences are presented. The international experience of managing public debt on the example of Argentina has been analyzed. The economic essence of technical default has been defined and the concept of technical
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Fan, Haoxuan. "The Impact of Public Debt on Economic Growth." Highlights in Business, Economics and Management 24 (January 22, 2024): 2260–64. http://dx.doi.org/10.54097/zmkc0t92.

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One of the main areas of inquiry nowadays is how government debt influences the growth of the economy. Researchers have come to different conclusions regarding the manner in which public debt consequences growth in the economy. As a result, this essay examines how public debt affects an economy or a group of economies' ability to grow. The paper examines the effect of the federal debt on commercial growth by compiling and evaluating relevant research from 2018 to 2023. Threshold is a crucial piece of reference information for examining the process by which public debt has influenced expansion
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Akram, Naeem. "Is public debt hindering economic growth of the Philippines?" International Journal of Social Economics 42, no. 3 (2015): 202–21. http://dx.doi.org/10.1108/ijse-02-2013-0047.

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Purpose – Over the years most of the developing countries have failed to collect enough revenues to finance their budgets. As a result, they have to face the problem of twin deficits and to rely on external and domestic debt to finance their developmental activities. The positive effects of public debt relate to the fact that in resource-starved economies debt financing (if done properly) leads to higher growth and adds to their capacity to service and repay external and internal debt. The negative effects work through two main channels – i.e., “Debt Overhang” and “Crowding Out” effects. The p
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Kožul, Joško. "PUBLIC DEBT AS A DETERMINANT OF THE CONVERGENCE OF BOSNIA AND HERZEGOVINA IN THE EU ACCESSION PROCESS." DIEM Dubrovnik International Economic Meeting 8, no. 1 (2023): 100–112. http://dx.doi.org/10.17818/diem/2023/1.11.

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The debt crisis, as one of the significant causes of disruptions in economies, is no longer reserved only for underdeveloped and developing countries, but it is a global economic problem that we are currently witnessing. The concept of debt crisis stems from excessive borrowing, which, by its increase, causes negative economic consequences. The realized deficit of transition countries over the past decade has had a significant impact on the increase in public sector debt, and these countries are faced with the great challenge of consolidating public finances and trying to reduce public debt wh
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Razinkova, Мila, Fedir Zhuravka, Natalia Nebaba, Rostislav Botvinov, and Serhiy Voytov. "External public debt management during the wartime: Case of Ukraine." Investment Management and Financial Innovations 20, no. 4 (2023): 26–35. http://dx.doi.org/10.21511/imfi.20(4).2023.03.

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Public debt plays a crucial role in the economic development of many countries, the effective management and servicing of the external public debt have become a priority in the financial and economic policy of the state, ensuring the stability of its development. The article aims to develop Ukraine’s external public debt management system during the wartime. As a result of the analysis, the key negative consequences of the impact of external debt growth on Ukraine`s economic security were determined, i.e. economic growth slowdown, increased dependence on creditors, increased costs of the publi
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Çifligu, Eneida Përmeti. "Public Debt and Economic Growth in Albania." Mediterranean Journal of Social Sciences 9, no. 6 (2018): 185–91. http://dx.doi.org/10.2478/mjss-2018-0174.

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Abstract A high public debt and its consequences in the economy remain a very important issue to be discussed, especially during the periods of crisis and recessions. During the crisis, although Albania managed to maintain a positive economic growth, its public debt remains high and worrying for the economists. The purpose of this paper is to determine if there exist a correlation between the public debt and the economic growth in Albania, where the economic growth will be considered as the increase of GDP. Many authors have provided their contributions with various empirical analyzes to study
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Bhul, Baburam. "Public debt management in Nepal: Current position and future consequences." Nepalese Journal of Development, national planning commission Nepal 29, no. 2 (2024): 175–92. https://doi.org/10.5281/zenodo.12785627.

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Abstract The purpose of this article is to analyze the present status of public debt management in Nepal and its growing challenges and consequences. Public debt management has been well- known in recent years, and it is now widely acknowledged that, despite its tight ties to monetary and fiscal policy, debt management has its own distinct goals and tools. Public debt management is the process of creating and carrying out a plan to manage the government's debt in order to secure the required money over the medium to long term at the least expensive price possible, consistent with a prudent lev
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Zadoia, Oleksandr A. "GOVERNMENT DEBT AS A THREAT TO THE COUNTRY’S ECONOMIC SECURITY." Academic Review 2, no. 55 (2021): 23–32. http://dx.doi.org/10.32342/2074-5354-2021-2-55-3.

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The article is devoted to the analysis of absolute and relative indicators of Ukraine’s public debt in order to identify threats to its economic security. A critical analysis of the “Guidelines for calculating the level of economic security of Ukraine” in terms of assessing external threats and substantiated proposals for their improvement. The dynamics of total public debt in general and external debt, in particular, has been specially studied; the ratio of public debt to GDP and the state budget; public debt service costs. Particular attention is paid to the IMF composite index, which allows
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Piątkowski, Paweł. "Public Debt as a Problem of the European Union." Oeconomia Copernicana 5, no. 2 (2014): 21–34. http://dx.doi.org/10.12775/oec.2014.011.

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The article is aimed at analyzing the consequences of debt crisis in European Union. Special attention is paid to changes in economic policy. In the first paragraph theoretical background of public debt is presented. In the second paragraph the level of public debt in European Union is compared with other countries. Finally, changes in the public debt policy are presented.
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Yangailo, Tryson. "Public Debt – Economic Growth Nexus: A Systematic Literature Review." Journal of Developing Economies 9, no. 2 (2024): 259–81. http://dx.doi.org/10.20473/jde.v9i2.54959.

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The purpose of this study was to present a systematic literature review on the public debt-economic growth nexus. The objective was to provide policymakers and researchers with significant insights on the impact of public debt on economic growth and to provide reliable evidence on the gaps in the literature that require their urgent attention. The study used a systematic review of the literature contained in two databases, namely Semantic Scholar and Google Scholar. The study shows that public debt above the threshold is detrimental to economic growth, while low public debt is conducive to gro
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Dissertations / Theses on the topic "Economic consequences of public debt"

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Sun, Fang. "ECONOMIC CONSEQUENCES OF SFAS 158." Diss., Temple University Libraries, 2011. http://cdm16002.contentdm.oclc.org/cdm/ref/collection/p245801coll10/id/114458.

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Business Administration/Accounting<br>Ph.D.<br>In this dissertation, I investigate the economic consequences of Statement of Financial Accounting Standards No. 158 (SFAS 158). SFAS 158 requires firms to move pension funding status from the footnotes to the balance sheet. Moving pension funding status from a footnote to the balance sheet improves the transparency and understandability of pension accounting, however it at the same time increases the pension liability recognized and decreases the shareholder's equity reported for firms with underfunded pension plans. I investigate whether firms t
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Tomaselli, Matteo. "Economic Growth and Public Debt: Beyond Debt-Thresholds. Theoretical and Empirical Issues." Doctoral thesis, Università degli studi di Trento, 2018. https://hdl.handle.net/11572/368208.

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The idea that public debt may represent a burden for the economic system as a whole has distant origins and focuses on who and how should pay for debt, and with what consequences on the economy. Nevertheless, particularly influential both for academic research and the implementation of the fiscal corrective policies was the empirical paper proposed by Reinhart and Rogoff in 2010 at the dawn of the crisis. Reinhart and Rogoff (2010), in a large panel of countries, identified a critical threshold of 90% of the debt-to-GDP ratio beyond which debt is harmful to growth. Several countries in the wor
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Tomaselli, Matteo. "Economic Growth and Public Debt: Beyond Debt-Thresholds. Theoretical and Empirical Issues." Doctoral thesis, University of Trento, 2018. http://eprints-phd.biblio.unitn.it/3050/1/Doctoral_Thesis_Matteo_Tomaselli.pdf.

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The idea that public debt may represent a burden for the economic system as a whole has distant origins and focuses on who and how should pay for debt, and with what consequences on the economy. Nevertheless, particularly influential both for academic research and the implementation of the fiscal corrective policies was the empirical paper proposed by Reinhart and Rogoff in 2010 at the dawn of the crisis. Reinhart and Rogoff (2010), in a large panel of countries, identified a critical threshold of 90% of the debt-to-GDP ratio beyond which debt is harmful to growth. Several countries in the wor
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Sogoni, Zanele. "Is public debt boosting economic growth in SADC?" Master's thesis, University of Cape Town, 2014. http://hdl.handle.net/11427/29033.

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The World Bank estimates that Africa's inadequate infrastructure decreases productivity by around 40 per cent every year and reduces national economic growth by 2 per cent annually. Such disadvantages hinder private sector investment, which is a key driver of job and wealth creation. Financing the development of infrastructure in an appropriate manner has been a leading topic in the continents development agenda. In order to remedy the infrastructure deficit problem, more and more African countries are increasing their public debts by borrowing in the international markets to finance their inf
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Faik, Sanja. "Public Debt and Economic Growth: An OECD Empirical Study." Thesis, Linnéuniversitetet, Institutionen för nationalekonomi och statistik (NS), 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-105541.

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It is commonly agreed that the rapid rise of Government debt in most of the OECDcountries can be traced to the recent financial crisis, and the complementary slumpcontributed to this problem. This has flicker contest about the probable unfavorablemacroeconomic impacts of persistent large debts, especially on economic growth. In thispaper, I investigate the impact of government debt-to-GDP (as percentage to GDP) ratio onreal per capita income growth in a panel of 37 OECD countries throughout 1989-2019. Iemploy the econometric method Fixed Effect Model (FEM) for the empirical analysis. Theresult
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KUTIVADZE, NATIA. "ESSAYS ON PUBLIC DEBT, FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH." Doctoral thesis, Università degli Studi di Milano, 2011. http://hdl.handle.net/2434/158618.

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In this thesis, we explore the relationship between public debt, financial development, and economic growth by controlling for the macro and institutional environment in which the debt was issued. In the first chapter, we distinguish between the growth impact of domestic versus external public debt to examine the importance of domestic financing as compared to external financing in countries grouped by income levels. The empirical analysis supports a non-linear relationship between total public debt and growth in the subsets of middle and low-income countries. This relationship is mainly dri
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Valli, Silvia. "Public debt sustainability and EMU : theory and some evidence." Thesis, University of Warwick, 1999. http://wrap.warwick.ac.uk/48975/.

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The thesis focuses on the interaction between default and inflation risk on public debt bonds. We lighten the trade-off between flexibility to adverse shocks and credibility, in the debt management field, and identify the conditions under which the credibility effect can be dominant. EMU is now fully operating, including most of the European candidates that have been let in under a more relaxed interpretation of the Maasticht Treaty criteria. In particular, the debt criterion originally set at 60% of the GDP, was reinterpreted to require a debtlGDP ratio declining towards the target. As some o
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Masoga, Mamokgaetji Marius. "The impact of public debt on economic growth in South Africa : a cointegration approach." Thesis, University of Limpopo, 2018. http://hdl.handle.net/10386/2421.

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Thesis (M.Com (Economics)) --University of Limpopo, 2018<br>The burden of public debt is an economic issue, dominating debates in different sectors of our society. The post financial crisis era has been marked with an increasing level of public debt at international, national and sub-national level. The study investigates if public debt can affect economic growth in South Africa, for the period 1995 to 2016. The results for Johansen test of cointegration signposted the existence of cointegration among variables observed in this study. The trace statistic and max-eigen value complimented each
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Siyanga, Malumo. "Does public debt spur or hinder economic growth in Zambia?" Thesis, University Of Cape Town, 2018. http://hdl.handle.net/11427/29935.

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This study investigates the relationship between public debts and economic growth in Zambia using ARDL analysis covering the period from 1970 to 2015. The results confirm the existence of the long run relationship between public debt and economic growth but the relationship is found to be negative and insignificant both in the short and long run. In addition, the results indicate that both the debt overhang and crowding out effects occur in Zambia. The study recommends that the government should develop a debt management policy, improve macroeconomic management, borrow prudently, improve proj
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Li, Zhigang. "Economic consequences of public policies in China : three essays /." Diss., Connect to a 24 p. preview or request complete full text in PDF format. Access restricted to UC campuses, 2005. http://wwwlib.umi.com/cr/ucsd/fullcit?p3170221.

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Books on the topic "Economic consequences of public debt"

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Friedman, Benjamin M. Day of reckoning: The consequences of American economic policy. Vintage Books, 1989.

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Friedman, Benjamin M. Day of reckoning: The consequences of American economic policy under Reagan and after. Random House, 1988.

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Friedman, Benjamin M. Day of reckoning: The consequences of American economic policy under Reagan and after. Random House, 1988.

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A, King Mervyn, Calvo Guillermo, and International Economic Association, eds. The Debt burden and its consequences for monetary policy: Proceedings of a conference held by the International Economic Association at the Deutsche Bundesbank, Frankfurt, Germany. Macmillan, 1998.

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Joella, Werlin, ed. Convictions, controversy and unintended consequences: Public service and private enterprise -- the nation and the Northwest -- memoirs of Daniel L. Goldy. Familore, 2003.

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Greiner, Alfred, and Bettina Fincke. Public Debt and Economic Growth. Springer Berlin Heidelberg, 2009. http://dx.doi.org/10.1007/978-3-642-01745-2.

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Bettina, Fincke, ed. Public Debt and Economic Growth. Springer-Verlag, 2009.

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Foundation, Birla Economic Research, ed. India's domestic public debt. Bookwell Publications, 1994.

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Silva, Anderson Caputo, Lena Oliveira de Carvalho, and Otavio Ladeira de Medeiros. Public debt: The Brazilian experience. National Treasury, 2010.

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Diokno, Benjamin E. Philippine public debt management. IMCC, 1992.

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Book chapters on the topic "Economic consequences of public debt"

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Padoan, Pier Carlo. "6. Escaping Fragmentation and Secular Stagnation." In Financing Investment in Times of High Public Debt. Open Book Publishers, 2023. http://dx.doi.org/10.11647/obp.0386.06.

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The EU has been impacted by multiple crises due to economic and geopolitical drivers. These crises have left scarring effects and may lead to fragmentation with serious permanent consequences. This takes place against the background of secular stagnation which makes the policy response more difficult. The main response strategy is the NGEU mechanism, based on public investment and structural reforms. It should deliver sustainable growth and structural change that allows for exit from the multiple crises―pandemic, geopolitical, energy, inflationary―and puts the European Union on a path of twin
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Thegeya, Aaron. "Economic Policies." In Public Debt in Kenya. Routledge, 2025. https://doi.org/10.4324/9781003648826-6.

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Lando, Henrik. "The Economic Consequences of Debt-Deflation." In Macroeconomic Theories and Policies for the 1990s. Palgrave Macmillan UK, 1992. http://dx.doi.org/10.1007/978-1-349-11639-3_4.

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Cohen, Jacob. "The US as the World’s No. 1 Foreign Debtor: Causes and Consequences." In Economic Development and World Debt. Palgrave Macmillan UK, 1989. http://dx.doi.org/10.1007/978-1-349-20044-3_27.

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Greiner, Alfred, and Bettina Fincke. "Debt and Growth: Empirical Evidence." In Public Debt, Sustainability and Economic Growth. Springer International Publishing, 2014. http://dx.doi.org/10.1007/978-3-319-09348-2_6.

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Eisner, Robert, and Paul J. Pieper. "Deficits, Monetary Policy, and Real Economic Activity." In The Economics of Public Debt. Palgrave Macmillan UK, 1988. http://dx.doi.org/10.1007/978-1-349-19459-9_1.

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Kawalec, Stefan, Ernest Pytlarczyk, and Kamil Kamiński. "The ability to cope with banking and debt crises." In The Economic Consequences of the Euro. Routledge, 2019. http://dx.doi.org/10.4324/9780429054006-26.

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Brown, Richard P. C. "Background to Sudan’s Economic Crisis of the 1980s." In Public Debt and Private Wealth. Palgrave Macmillan UK, 1992. http://dx.doi.org/10.1007/978-1-349-22222-3_3.

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Lane, Timothy. "High Public Debt: Consequences for Investment and Growth." In Banking, International Capital Flows and Growth in Europe. Springer Berlin Heidelberg, 1997. http://dx.doi.org/10.1007/978-3-642-59030-6_7.

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Greiner, Alfred, and Bettina Fincke. "Government Debt and Human Capital Formation." In Public Debt, Sustainability and Economic Growth. Springer International Publishing, 2014. http://dx.doi.org/10.1007/978-3-319-09348-2_5.

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Conference papers on the topic "Economic consequences of public debt"

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Barhatov, Viktor, Yuner Kapkaev, and Sergei Poliduts. "Consequences of Ineffective Policies and a Risk of Default in Russia and the Eurozone." In International Conference on Eurasian Economies. Eurasian Economists Association, 2014. http://dx.doi.org/10.36880/c05.00933.

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The present paper investigates the nature and essence of the state’s debt policy and identifies patterns that contribute to the default. It assesses the status and the effectiveness of public debt management both in Russia and several European countries. The paper suggests a number of specific measures and instruments of economic, legal and administrative measures aimed at improving the efficiency of public debt management and minimizing the risk of default. A methodological basis of the study that has served as a dialectical approach, reveals a possibility of studying debt management policies
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Akinwande, Mayowa, Alexander Lopez, Tobi Yusuf, et al. "Data Analysis on Credit Card Debt: Rate of Consumption and Impact on Individuals and the US Economy." In 5th International Conference on Artificial Intelligence and Big Data. Academy & Industry Research Collaboration Center, 2024. http://dx.doi.org/10.5121/csit.2024.140401.

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This paper provides a comprehensive examination of the evolution of credit cards in the United States, tracing their historical development, causes, consequences, and impact on both individuals and the economy. It delves into the transformation of credit cards from specialized merchant cards to ubiquitous financial tools, driven by legal changes like the Marquette decision. Credit card debt has emerged as a significant financial challenge for many Americans due to economic factors, consumerism, high healthcare costs, and financial illiteracy. The consequences of this debt on individuals are ex
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Rimsevics, Ilmars. "Economic crises and factors fostering smaller economic downturn and speedier recovery." In 24th International Scientific Conference. “Economic Science for Rural Development 2023”. Latvia University of Life Sciences and Technologies. Faculty of Economics and Social Development, 2023. http://dx.doi.org/10.22616/esrd.2023.57.027.

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COVID-19 pandemic caught the world by surprise. On March 11th, 2020, World Health Organization (WHO) announced the global pandemic, and governments started to initiate various kinds of non-pharmaceutical interventions (NPI) and disease containment measures. These NPI measures reduced the mobility of the population and slowed down business activities. State governments had to come up with viable fiscal support packages for the health and economic sectors. It created a unique opportunity for economists and academia to compare the effectiveness of different state governments and policies vis-a-vi
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Keišs, Staņislavs, and Alla Seregina. "The Public Debt of Latvia: Short-Term and Long-Terms Aspects." In Contemporary Issues in Business, Management and Education. Vilnius Gediminas Technical University, 2017. http://dx.doi.org/10.3846/cbme.2017.042.

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The article investigates the structure and dynamics of public debt of Latvia for the period from 2006–2016 year. The relevance of the study long-term effects of public debt on the economy of Latvia is predetermined by a significant increase in its volume of low GDP growth rates in recent years. This article discusses conceptual approaches and criteria for evaluation of the public debt. An analysis of the main reasons for the growth of public debt of Latvia after joining the EU, considers its specific characteristics and consequences as compared with the more developed EU countries on the basis
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Mihajlović, Ljiljana Stošić, and Miloš Nikolić. "CONSEQUENCES OF THE COVID-19 PANDEMIC ON THE WORLD AND SERBIAN ECONOMY." In NORDSCI International Conference. SAIMA Consult Ltd, 2020. http://dx.doi.org/10.32008/nordsci2020/b2/v3/03.

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One of the biggest economic crises since the industrial revolution centuries ago is underway, and its intensity is still invisible. The current crisis is caused by the corona virus (COVID-19) pandemic. In March, when the corona began to take off all over the world, including in Serbia, leading epidemiologists claimed that it would be better from May, some even from June, guided by the thesis that warmer weather could stop the virus and bring life back. on the "old". It is now almost impossible to give any precise forecast, both from the health and economic aspect. The only thing that is certai
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Birškytė, Liucija. "The impact of government debt on public finance stability in Lithuania." In Contemporary Issues in Business, Management and Economics Engineering. Vilnius Gediminas Technical University, 2019. http://dx.doi.org/10.3846/cibmee.2019.030.

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Purpose – though the global financial crisis is well behind us several EU countries continue to experience problems with public finance stability and need to cope with the consequences of high public debt. The purpose of the article is to find the relationship between government debt and of public finance stability in Lithuania. Research methodology – in order to achieve the aim of the article Financial Stability Index (FSI) for Lithuania has been created. It is based on theory and previous research. To find the determinants of FSI the multiple regression analysis model was specified and teste
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Khachaturian, Raisa. "SUPPLY-DEMAND SHOCKS AND GOVERNMENT RESPONSE TO PANDEMIC ISSUES (EXAMPLE OF GEORGIA)." In Proceedings of the XXIII International Scientific and Practical Conference. RS Global Sp. z O.O., 2020. http://dx.doi.org/10.31435/rsglobal_conf/25112020/7240.

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In this article, it is discussed the main threats and consequences of the cause of the modern economic crisis - the coronavirus pandemic - that have affected the macroeconomic situation in different countries and regions of the world. The focus is on the radical international economic changes that have caused supply and demand shocks, which have conditioned the structural nature of the crisis. The negative consequences of the pandemic in different sectors of the world are analyzed and general tendencies related to foreign trade, protectionism, employment, fiscal, monetary and other policies ar
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Zhumakunova, Tolkun, and Raziya Abdiyeva. "Public Debt and Public Debt Administration in Kyrgyzstan." In International Conference on Eurasian Economies. Eurasian Economists Association, 2017. http://dx.doi.org/10.36880/c08.01842.

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Public debt and public debt administration in recent years became significant economic problem of most countries. After the collapse of the Soviet Union, Kyrgyzstan has faced with public debt problem. Sharp decline of production, high level of unemployment and the need for economic and structural reforms during transition to market economy caused a large budget deficit.&#x0D; Budget deficit and public debt problems still remain as one of important macroeconomic issues in Kyrgyzstan. The purpose of our paper is to overview public debt politics and analyze public debt administration in Kyrgyzsta
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Muchova, Eva. "PUBLIC DEBT AND ECONOMIC GROWTH - A POLEMIC DISCUSSION." In SGEM 2014 Scientific SubConference on POLITICAL SCIENCES, LAW, FINANCE, ECONOMICS AND TOURISM. Stef92 Technology, 2014. http://dx.doi.org/10.5593/sgemsocial2014/b24/s7.070.

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Smirnovs, Dmitrijs. "Analysis of public debt trends in Latvia." In 25th International Scientific Conference. “Economic Science for Rural Development 2024”. Latvia University of Life Sciences and Technologies. Faculty of Economics and Social Development, 2024. https://doi.org/10.22616/esrd.2024.58.025.

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In recent years, the size of public debt has increased significantly in Latvia and the European Union. However, a huge level of public debt negatively affects economic development - both at the regional and state levels. Moreover, increased interest rates increase the financial burden on the state budget. Therefore, one of the goals of the EU financial policy will be to stabilize public debt in the coming years. The purpose of the work is to analyse trends in changes in public debt and identify the main factors influencing the growth of public debt. Using the Domar model, the author will devel
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Reports on the topic "Economic consequences of public debt"

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Andrian, Leandro Gaston, César M. Rodríguez, and Oscar Valencia. Surges in the Shadows: Stock-Flow Adjustments and Public Debt Spikes. Inter-American Development Bank, 2024. http://dx.doi.org/10.18235/0013162.

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In this paper, we study the drivers of public debt surges across 172 countries from 1980-2021. We focus on the role of discrepancies between the annual change in public debt and the budget deficit, referred to as stock-flow adjustments (SFA). The analysis employs survival methods to model the effect of SFA and other macroeconomic factors on the hazard rate for debt spike events. We differentiate between debt accumulation trends and spikes to examine how SFA influences the likelihood of a spike once a country is already on an increasing debt trajectory. Our results indicate that an increase of
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Raw, Silvia. Country Program Evaluation: Jamaica (2003-2008). Inter-American Development Bank, 2010. http://dx.doi.org/10.18235/0010558.

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This Country Program Evaluation (RE-365) covers the period 2003-2008, which was marked by the consequences of Jamaica's financial crisis which had erupted in 1995. During the crisis, the Bank remained the major multilateral partner engaged in the country. However, it underestimated the impact of the crisis, which left a legacy of debt overhang that continues to dominate and constrain the country's performance. Specifically, the Bank failed to recognize until quite late that the need to meet debt payments would require strong adjustment measures, undermining the public investment program. In li
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Beuermann, Diether, Henry Mooney, Elton Bollers, et al. Caribbean Quarterly Bulletin 2020: Volume 9: Issue 4, December 2020. Inter-American Development Bank, 2020. http://dx.doi.org/10.18235/0002948.

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For most Caribbean countries, the COVID-19 pandemic will translate into the deepest single-year contraction of real GDP on record in 2020. With the exception of Guyana, countries have experienced deep recessions, severe increases in unemployment, and long-lasting damage to many corporate and household balance sheets. The social consequences of the crisis continue to mount, and despite governments best efforts to buffer the shock to families, enterprises, and domestic markets, there remains a dire need for continued and more broad-based stimulus to ensure that economic capital both human and ot
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Galofré-Vilà, Gregori, Martin McKee, Christopher Meissner, and David Stuckler. The Economic Consequences of the 1953 London Debt Agreement. National Bureau of Economic Research, 2016. http://dx.doi.org/10.3386/w22557.

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Fuentes, J. Rodrigo, and César Calderón. Government Debt and Economic Growth. Inter-American Development Bank, 2013. http://dx.doi.org/10.18235/0011505.

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The growth prospects of a nation are stymied by the burden of government debt. This study has two goals: first, it tests whether public debt hinders growth; and, second, it explores whether economic policy ameliorates this effect. A large panel data of countries for 1970-2010 reveal a negative and robust effect of public debt on growth. Strong institutions, high quality domestic policies, and outward-oriented policies partly mitigate this adverse effect. An enhanced policy environment and its interaction with public debt has helped explain the improved growth performance of industrial and deve
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Lora, Eduardo, and Mauricio Olivera. Public Debt and Social Expenditure: Friends or Foes? Inter-American Development Bank, 2006. http://dx.doi.org/10.18235/0011258.

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This paper assesses the effects of total public debt (external and domestic) on social expenditure worldwide and in Latin America using an unbalanced panel of around 50 countries for the period 1985-2003. The most robust and important finding is that higher debt ratios do reduce social expenditures, as popular opinion holds. Debt displaces social expenditures not so much because it raises the debt burden, but because it reduces the room (or the appetite) for further indebtedness. Loans from multilateral organizations like the World Bank or the Inter-American Development Bank do not seem to ame
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Fernández-Gallardo, Álvaro, and Iván Payá. Public debt burden and crisis severity. Banco de España, 2025. https://doi.org/10.53479/40085.

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Recent theoretical studies have highlighted that both the level of public debt and the unit cost of servicing the debt (r-g) play a role in the sustainability of public finances. This paper builds on this literature and introduces a new approach to analysing the relationship between economic downturns and sovereign debt risks by considering the total public debt burden, that is, the interaction between the level of debt and r-g. We conduct this analysis for 18 advanced economies over a span of 150 years, uncovering three novel findings. First, we document that the level of public debt and the
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Alloza, Mario, Jorge Martínez, Juan Rojas, and Iacopo Varotto. Public debt dynamics: a stochastic approach applied to Spain. Banco de España, 2024. http://dx.doi.org/10.53479/36693.

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This paper presents a methodology for analysing public debt sustainability that incorporates factors that enable uncertainty in the macro-financial environment to be quantified. The aim is to identify risks, not only under specific assumptions, but also considering a complete characterisation of potential developments in the real economy and in financing costs, based on the historical evidence available. To this end, stochastic shocks are included in the equations for a standard debt sustainability analysis (DSA) model, using recent evidence to gauge their scale and recurrence. When applied to
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Andrian, Leandro Gaston, Oscar Valencia, Jorge Hirs, and Ivan Leonardo Urrea Rios. Fiscal Rules and Economic Cycles: Quality (Always) Matters. Inter-American Development Bank, 2023. http://dx.doi.org/10.18235/0004570.

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Governments can issue public debt for both good and bad reasons. The former include intertemporal tax smoothing, fiscal stimulus, and asset management. In contrast, the bad reasons, which generate higher indebtedness, are mainly associated with political cycles, rent capture, intergenerational transfers, and common pool problems. Fiscal rules aim to eliminate the problem of time inconsistency of public finances and minimize debt accumulation by setting debt limits. Despite the theoretical relevance of fiscal rules and institutions to the proper management of fiscal processes in different count
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Bonomo, Marco, Ricardo Brito, and Bruno Martins. Macroeconomic and Financial Consequences of the Post-Crisis Government-Driven Credit Expansion in Brazil. Inter-American Development Bank, 2015. http://dx.doi.org/10.18235/0011682.

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Government-driven credit played an important role in countervailing the private credit crunch in Brazil during the recent financial crisis. However, government credit concessions continued to expand after the economy recovered. This paper investigates some important features of this expansion using a huge repository of loan contracts between banks and firms, composing an unbalanced panel of almost 1 million firms between 2004 and 2012. The results show that larger, older and less risky firms have benefited most from the government-sponsored credit expansion. Additionally, although higher acces
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