External Debt Sustainability: Theory and Empirical Evidence
AbstractThis paper is a review of the different approaches on external debt sustainability. The Heavily Indebted Poor Country (HIPC) Initiative was launched to assure a permanent exit from debt dependence. However, the IMF-World Bank program is not without faults, in particular for what concerns debt sustainability analysis. The aim of this work is to present the IMF-World Bank approach to debt sustainability, together with the other approaches in the literature. We show that a new and broader framework is emerging to address the main shortcomings of the standard analysis, namely, the effects that large external debts and deficits have on growth and the macroeconomic environment.
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Bibliographic InfoPaper provided by EconWPA in its series International Finance with number 0512007.
Length: 48 pages
Date of creation: 25 Dec 2005
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HIPC Initiative; Debt Sustainability; Debt Relief; External Debt.;
Find related papers by JEL classification:
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
- H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
This paper has been announced in the following NEP Reports:
- NEP-AFR-2006-01-01 (Africa)
- NEP-ALL-2006-01-01 (All new papers)
- NEP-DEV-2006-01-01 (Development)
- NEP-PBE-2006-01-01 (Public Economics)
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