Publicaties

This study surveys the theoretical literature on the optimal public debt composition during sovereign debt crises. This survey is particularly relevant because sovereign debt crises have been recurrent manifestations over the past few decades, and there is growing evidence on the critical role of the composition of public debt portfolios during such events. Public debt composition refers to the characteristics of public debt portfolios, such as ...

Although the recent global financial crisis has stimulated a vast amount of research on the impact of public debt on economic growth and also increasingly on the role of private credit, the total levels of indebtedness of an economy have largely been ignored. This paper studies the impact of the total level of and increases in debt-to-GDP on economic growth for 26 developed countries in the short, medium and longer term. We analyse whether we ...

This paper exploits a panel of 28 European Union (EU) countries between 1995 and 2016 to analyze whether higher debt resulted in lower private investment - the so called debt overhang effect. We deal with the potential endogeneity between private investment and other macroeconomic determinants by applying an instrumental variable approach (GMM). Our results support the debt overhang hypothesis and indicate that this relationship only works ...

When the COVID-19 pandemic added to already elevated debt vulnerabilities in low-income countries, the G20 launched the Debt Service Suspension Initiative (DSSI) and the Common Framework for Debt Treatments beyond the DSSI, which have provided limited relief so far. For several countries, deeper and more wide-ranging debt treatments will likely be needed to secure future debt sustainability. This paper looks at the Heavily Indebted Poor ...

When the COVID-19 pandemic added to already elevated debt vulnerabilities in low income countries, the G20 launched the Debt Service Suspension Initiative (DSSI) and the Common Framework for Debt Treatments beyond the DSSI, which have provided limited relief so far. For several countries, deeper and more wide-ranging debt treatments will likely be needed to secure future debt sustainability. This paper looks at the Heavily Indebted Poor ...

© 2015 CEPII (Centre d[U+05F3]Etudes Prospectives et d[U+05F3] Informations Internationales), a center for research and expertise on the world economy. After two debt relief initiatives launched in 1996 (the Heavily Indebted Poor Countries Initiative, HIPC) and in 1999 (The enhanced HIPC initiative), the G7 decided to go further by cancelling (most of) the remaining multilateral debt for these HIPC countries through the Multilateral Debt Relief ...

© 2017 Elsevier B.V. This paper analyses debt stabilization in a monetary union that features endogenous risk premia. In particular, debt stabilization in two diametrically opposed regimes is compared. In the first regime, the “national fiscal discipline regime” financial markets impose sovereign risk premia based on each country's government debt level. In the second regime, the “Eurobonds regime” financial markets impose a risk premium based ...