Fiscal (Public Debt) Sustainability

Abstract

Fiscal sustainability, a term sometimes used interchangeably with public debt sustainability, has become a major concern in recent years, as many developing and emerging market countries have experienced capital outflows or currency crises as a result of heavy public debt burdens. Consequently, countries are paying closer attention to this issue, and agencies such as the International Monetary Fund are devoting more attention to public debt sustainability in their periodic assessments of national economies…