01970cas a2200277 a 4500 AALejournalIMF021109 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513550794 1018-5941 BD-DhAAL BD-DhAAL Lian, Weicheng. Public Debt and r - g at Risk / Weicheng Lian, Andrea Presbitero, Ursula Wiriadinata. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (42 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 As interest rate-growth differentials (r-g) turned negative in many countries, governments consider pursuing fiscal expansion and the potential risks involved. Using a large sample of advanced and emerging economies, our analysis suggests that high public debts can lead to adverse future r-g dynamics. Specifically, countries with higher initial public debt experience (i) a shorter duration of negative r-g episodes and a higher probability of reversal, (ii) higher average r-g, and (iii) a more right-skewed r-g distribution, that implies higher down-side risks. Furthermore, high-debt countries experience larger increases in interest rates in response to (iv) an unexpected decline in domestic output and (v) an increase of global volatility. Results are stronger when public debts are denominated in foreign currencies. Mode of access: Internet Japan imf Presbitero, Andrea. Wiriadinata, Ursula. IMF Working Papers; Working Paper ; No. 2020/137 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/137/001.2020.issue-137-en.xml IMF e-Library