01958cas a2200277 a 4500 AALejournalIMF019197 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498312103 1018-5941 BD-DhAAL BD-DhAAL Fatas, Antonio. The Motives to Borrow / Antonio Fatas, Atish Ghosh, Ugo Panizza, Andrea Presbitero. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (53 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 Governments issue debt for good and bad reasons. While the good reasons-intertemporal tax-smoothing, fiscal stimulus, and asset management-can explain some of the increases in public debt in recent years, they cannot account for all of the observed changes. Bad reasons for borrowing are driven by political failures associated with intergenerational transfers, strategic manipulation, and common pool problems. These political failures are a major cause of overborrowing though budgetary institutions and fiscal rules can play a role in mitigating governments' tendencies to overborrow. While it is difficult to establish a clear causal link from high public debt to low output growth, it is likely that some countries pay a price-in terms of lower growth and greater output volatility-for excessive debt accumulation. Mode of access: Internet Ghosh, Atish. Panizza, Ugo. Presbitero, Andrea. IMF Working Papers; Working Paper ; No. 2019/101 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/101/001.2019.issue-101-en.xml IMF e-Library