5 Questions
What impact does a larger primary budget deficit have on debt accumulation over time?
It leads to higher debt accumulation over time.
Why is public debt sustainability crucial for both developing and advanced economies?
Higher levels of public debt can hinder economic growth and development.
What factors do analysts need to consider in assessing public debt sustainability?
Structure of public debt, risks from the political economy, and macroeconomic aspects.
How does a primary budget deficit impact the sustainability of public debt?
A primary budget deficit needs to be financed through borrowing, adding to the overall debt burden.
Why is it important to monitor debt trends and assess sustainability despite few public defaults in recent times?
It's important to monitor debt trends and assess sustainability to prevent potential future defaults.
Explore the sustainability of public and external debt burden in Pakistan and India from 1971 to 2017. Understand the analysis of factors such as interest rate-growth rate, primary budget balance-to-GDP, and current account balance-to-exports ratio, and their impact on debt accumulation.
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