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Coordinating Public Debt Management with Fiscal and Monetary Policies: An Analytical Framework

This paper proposes a sovereign asset and liability management framework for analyzing the inter-relationships between debt management, fiscal and monetary policies. It illustrates the consequences of uncoordinated policy mix and extends Sargent and Wallace (1981 and 1993) by including debt This paper—a product of the Banking and Debt Management Department—is part of a larger effort…

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Economic Growth with constraints on Tax Revenues and public Debt: Implications for fical policy and cross-country differences

This paper evaluates optimal public investment and fiscal policy for countries characterized by limited tax and debt capacities. We study a non stochastic CRS endogenous growth model where public expenditure is an input in the production process, in countries where distortions and limited enforceability result in limited fiscal capacities, as captured by a maximal effective…

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Public Debt, Fiscal Solvency and Macroeconomic uncertainty in Latin America: The cases of Brazil, Colombia, Costa Rica and Mexico

Ratios of public debt as a share of GDP in Brazil, Colombia, and Mexico were 10 percentage pointshigher on average during 1996-2002 than in the period 1990-1995. Costa Rica’s debt ratio remainedstable but at a high level near 50 percent. Is there reason to be concerned for the solvency of the public sector in these…

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