Dealing with High Debt in an Era of Low Growth
Staff Discussion Notes, September 23, 2013
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- Dealing with High Debt in an Era of Low Growth
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Bibliographic details
- Authors: Bernardin Akitoby, Jochen R. Andritzky, Helge Berger, Takuji Komatsuzaki, Justin Tyson
- Published: September 23, 2013
- Series: Staff Discussion Notes
- DOI: https://doi.org/10.5089/9781484316139.006
Summary
- The task of dealing with high debt has become particularly challenging in European advanced economies where expectations of low growth and limits to monetary policy support are shifting the burden of adjustment onto fiscal consolidation.
- The Staff Discussion Note (SDN) investigates the main drivers behind successful past debt reversals, focusing on:
- macroeconomic and financial market conditions,
- the speed and form of fiscal adjustment,
- the institutional policy setting,
- and other factors.
- Policy conclusions will depend on the emerging stylized facts but are likely to include considerations on the design and pace of fiscal consolidation, taking into account country-specific as well as regional economic, institutional, and political factors.
Key findings and focus areas
- Investigation areas:
- drivers behind successful past debt reversals,
- macroeconomic and financial market conditions affecting debt reduction,
- speed and form of fiscal adjustment associated with debt reversals,
- role of institutional policy settings and other determinants.
- The analysis emphasizes that expectations of low growth and limited monetary policy room increase reliance on fiscal consolidation in affected economies.
Policy considerations
- Likely policy considerations (as indicated in the SDN):
- design of fiscal consolidation measures,
- appropriate pace of fiscal consolidation,
- tailoring policies to country-specific and regional economic, institutional, and political contexts.
Publication and metadata
- Authors: Bernardin Akitoby, Jochen R. Andritzky, Helge Berger, Takuji Komatsuzaki, Justin Tyson
- Date: September 23, 2013
- Series: Staff Discussion Notes No. 2013/007
- Issue: 007
- Volume: 2013
- Pages: 32
- DOI: https://doi.org/10.5089/9781484316139.006
- Stock No: SDNEA2013007
- ISBN: 9781484316139
- ISSN: 2617-6750
- Subjects: Asset and liability management, Debt reduction, Fiscal consolidation, Fiscal policy, Fiscal stance, Inflation, Prices, Public debt
- Keywords: debt, debt ratio, debt reduction, Debt reduction, debt reversal, economy, Europe, financing debt, Fiscal Consolidation, Fiscal stance, GDP, General Government Debt, Global, Inflation, interest rate, multiplier effect, Public Debt Sustainability, reduction episode, risk premium, SDN
Source: Staff Discussion Note "Dealing with High Debt in an Era of Low Growth" (Staff Discussion Notes 2013, 007), accessed via IMF publication metadata.
Content in this bundle
- _sdn1307 — Executive Summary