{
  "title": "Public Debt Targeting An Application to the Caribbean",
  "publication": "IMF Working Papers, August 1, 2011",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/public-debt-targeting-an-application-to-the-caribbean-25184",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/31/public-debt-targeting-an-application-to-the-caribbean-25184",
  "overlayPath": "/en/publications/wp/issues/2016/12/31/public-debt-targeting-an-application-to-the-caribbean-25184/index.md",
  "summary": "This paper proposes a fiscal policy framework we call Public Debt Targeting. The framework seeks to smooth primary spending over the business cycle while remaining consistent with public debt sustainability.",
  "sections": [
    {
      "heading": "Overview of the proposed framework",
      "content": "- The paper proposes a fiscal policy framework called Public Debt Targeting.\n- Objective: smooth primary spending over the business cycle while remaining consistent with public debt sustainability.\n- Implementation mechanism:\n  - Government announces a commitment to a public debt band trajectory over the medium term.\n  - Government sequentially announces primary expenditures for the next budget cycle.\n  - Primary expenditures are determined recursively based on the history of shocks."
    },
    {
      "heading": "Key distinctions from existing approaches",
      "content": "- Public Debt Targeting differs from a structural balance rule by internalizing the effect of deterioration in creditworthiness from fiscal deficits and public debt accumulation.\n- Channels affected by creditworthiness deterioration listed in the source:\n  - sovereign spreads\n  - interest rates\n  - exchange rates\n  - economic activity"
    },
    {
      "heading": "Application and empirical context",
      "content": "- The framework is applied to Caribbean economies.\n- Empirical context from the source:\n  - Caribbean economies \"in general show high levels of public debt and procyclical primary expenditure.\""
    },
    {
      "heading": "Main themes and analytical focus",
      "content": "- Budget planning and preparation\n- Expenditure: envelope, growth, impulse, simulation, stance, vis-à-vis GDP\n- Fiscal policy and fiscal stance\n- Public debt and public debt sustainability\n- Public financial management (PFM)\n- Political economy considerations\n- Interest expenditure, potential GDP, real GDP\n\n---\n\n Content in this bundle\n\n- wp11203\n  - wp11203 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp11203 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/public-debt-targeting-an-application-to-the-caribbean-25184"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/31/public-debt-targeting-an-application-to-the-caribbean-25184/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/31/public-debt-targeting-an-application-to-the-caribbean-25184/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/31/public-debt-targeting-an-application-to-the-caribbean-25184/bundle-manifest.json)",
    "Authors: Alejandro D Guerson, Giovanni Melina",
    "Published: August 1, 2011",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781463902148.001",
    "The paper proposes a fiscal policy framework called Public Debt Targeting.",
    "Objective: smooth primary spending over the business cycle while remaining consistent with public debt sustainability.",
    "Implementation mechanism:",
    "Public Debt Targeting differs from a structural balance rule by internalizing the effect of deterioration in creditworthiness from fiscal deficits and public debt accumulation.",
    "Channels affected by creditworthiness deterioration listed in the source:",
    "The framework is applied to Caribbean economies.",
    "Empirical context from the source:",
    "Budget planning and preparation",
    "Expenditure: envelope, growth, impulse, simulation, stance, vis-à-vis GDP",
    "Fiscal policy and fiscal stance",
    "Public debt and public debt sustainability",
    "Public financial management (PFM)",
    "Political economy considerations",
    "Interest expenditure, potential GDP, real GDP",
    "**_wp11203**"
  ],
  "related": [
    {
      "title": "_wp11203",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2011/_wp11203.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2011/_wp11203.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2011/_wp11203.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/31/public-debt-targeting-an-application-to-the-caribbean-25184/index.md",
    "json": "/en/publications/wp/issues/2016/12/31/public-debt-targeting-an-application-to-the-caribbean-25184/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/31/public-debt-targeting-an-application-to-the-caribbean-25184/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-18T04:14:18.102Z"
}