The paper examines the relationship between saving behavior and external debt-service, which is an economic burden in sub-Saharan Africa. The paper claims that the speed with which the debt-service to GDP ratio is expected to decline might be overstated and this could retard the success of the...

Using a modified money supply and demand model, this study shows that financial deepening, defined as M2/GDP, is positively influenced by the marginal propensity to save, and is inversely related to money velocity. Financial deepening is enhanced when savings increase, while saving propensities...