challenge lies in ensuring debt remains sustainable, given the need to scale up development expenditure to address …

expenditure allocation to the social sector and to public investment is constrained by the need to pursue fiscal discipline in … order to avert debt distress. Within a framework of public expenditure choice, the paper investigates the impact of the … external debt-servicing constraint, as well as external aid, on government expenditure allocation in sub-Saharan Africa …

Debt-financed fiscal stimulus programmes directly stimulate aggregate demand through government expenditure or tax cuts …, but their effectiveness is highly dependent on direct crowding out of private sector expenditure, spillover effects to the …) on short-term and long-term (nominal and real) interest rates. These disaggregated expenditure and revenue shocks raise …

inflation and reduces growth. The results suggest that the increase in the share of government expenditure in GDP (size …