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dc.titleDon't Talk to Me about Debt. Talk to Me about Growth
dc.contributor.authorRuprah, Inder J.
dc.contributor.authorMelgarejo, Karl Alexander
dc.contributor.orgunitCountry Department Caribbean Group
dc.coverageThe Caribbean
dc.date.available2013-10-10T00:00:00
dc.date.issue2013-09-01T00:00:00
dc.description.abstractIn this policy brief, we focus on the debates surrounding what has been called the "silent debt crisis" of the Caribbean. We discuss the level of debt at which the relation with economic growth turns from positive to negative. We also discuss, illustrated with simulations of the tradeoffs, how to reduce the debt level with policy options that complement fiscal austerity with debt restructuring, economic growth promotion, acceleration of inflation, and financial repression. Each policy option carries an advantage in terms of easing the required fiscal adjustment; however, each also presents downsides that could undermine such a benefit. There appears to be no gain without upfront pain.
dc.format.extent24
dc.identifier.doihttp://dx.doi.org/10.18235/0008430
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Dont-Talk-to-Me-about-Debt-Talk-to-Me-about-Growth.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectFiscal Policy
dc.subjectPublic Debt
dc.subject.jelcodeE62 - Fiscal Policy
dc.subject.jelcodeH60 - National Budget, Deficit, and Debt: General
dc.subject.jelcodeH61 - Budget • Budget Systems
dc.subject.jelcodeH63 - Debt • Debt Management • Sovereign Debt
dc.subject.jelcodeH68 - Forecasts of Budgets, Deficits, and Debt
dc.subject.keywordseconomic growth;primary balance;the Caribbean;Public debt;fiscal multipliers
dc.typePolicy Briefs
idb.identifier.pubnumberPolicy Briefs
idb.operationRG-P1490
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