01679cas a2200241 a 4500 AALejournalIMF017650 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484300657 1018-5941 BD-DhAAL BD-DhAAL Pienkowski, Alex. Debt Limits and the Structure of Public Debt / Alex Pienkowski. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (21 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper provides a tractable framework to assess how the structure of debt instruments-specifically by currency denomination and indexation to GDP-can raise the debt limit of a sovereign. By calibrating the model to different country fundamentals, it is clear that there is no one-size-fits-all approach to optimal instrument design. For instance, low income countries may find benefit in issuing local currency debt; while in advanced economies debt tolerance can be substantially enhanced through issuing GDP-linked bonds. By looking at the marginal impact of these instruments, the paper also provides insight into the optimal portfolio compostion. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2017/117 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/117/001.2017.issue-117-en.xml IMF e-Library