This paper examines the impact of public debt servicing on private investment in Egypt within the debt overhang hypothesis. While existing research largely focuses on the debt-growth relationship, limited attention has been given to how debt servicing burdens affect private capital formation....

Interest rate spreads vary widely across time and countries and are a central driver of business cycles in emerging market economies (EMEs). Since 2008, advanced market economies (AMEs) have exhibited persistently higher and more volatile spreads, alongside increased macroeconomic volatility and...

Why do countries set sovereign debt ceilings if they keep raising them? This paper shows that debt ceilings can serve as intermediate commitment devices that reduce expected dilution, thereby lowering spreads-and their volatility-even without reducing total borrowing. We propose a new sovereign...