This paper investigates the international spillovers of government debt and the associated risk of inflation within a … can shift part of its long-term debt burden to the funded country. Moreover, the PAYG country gains from unexpected … with the level of debt in the PAYG country. Higher inflation risk harms both countries. Actually, in contrast to the debt …

economy if the feedback from debt surprises back to the primary surplus is too weak. This result, which relies on endogenous … emerging markets where sovereign credibility is not well established. Recent debt developments in Western Europe and in the US …

We decompose capital flows--both debt and equity--into public and private components and study their relationship with … to sovereign transactions. Specifically, we show: (i) international capital flows net of government debt are positively … aid flows, which are mostly accounted as debt, are also positively correlated with productivity growth consistent with the …