Development finance institutions (DFIs) face significant challenges in addressing unmet development needs, particularly in smaller, lower-income countries with few large firms and high investment risks, and in sectors with few private operators. In response, some DFIs, like British International...

This paper provides a novel way for instructors to teach about the perils of a large National Debt, which is currently $36 trillion. We provide a detailed lesson plan that utilizes balloons to illustrate the possible paths a society can take to address this issue. The lesson plan consists of an...

This paper studies how credit guarantee and employment protection programs interact in assisting firms during crises times. The paper analyzes how these government programs influence credit allocation, indebtedness, and risk at both the micro and macro levels. The programs provide different...

Long-term projections are the bedrock of any analysis looking at the sustainability of public finances. This paper computes the changes in economic growth in individual European Union (EU) countries needed for government debt-to-GDP ratios to stay on their baseline trajectories (taken from the...

Through fiscal reaction functions, we investigate fiscal sustainability for five European country-group panels and check for a change in fiscal behaviour after countries adopted the euro as their currency. Using annual data for the period between 1990 and 2021, we identify evidence of average...

China's global development finance is undergoing a major transformation. As domestic reforms and borrower debt risks rise, Chinese financial institutions are shifting how they finance projects abroad-especially in Africa, where they've long played a major role. This report explores how China is...

More than three years after Russia invaded Ukraine in February 2022, some of its global spillover effects continue to impact many low-income and lower-middle-income countries (LICs and LMICs). As the world faces new global shocks - such as aid cuts and rising US tariffs - this synthesis report...

Germany is undergoing a major shift in fiscal policy. In response to recent crises and long-term structural challenges, the federal government has introduced a debt-financed spending package that marks a significant departure from past fiscal orthodoxy. This paper investigates the macroeconomic...

Sri Lanka stands at a pivotal moment. After overcoming its most severe economic crisis since Independence, the country has shown remarkable signs of recovery and stabilisation. Yet, significant challenges remain - from persistent poverty to looming global uncertainties - threatening to stall...

Public debt has increased steadily over the years, leaving many countries at risk of debt distress and even pushing some to default. This paper analyses the impact of sovereign default on post-default debtto-GDP ratios in 144 countries from 1980 to 2019. Applying the entropy balancing method, we...

This paper examines whether biased income expectations due to overconfidence lead to higher levels of debt taking. We show suggestive evidence for a link between overconfidence and borrowing behavior in a representative survey of German households (German Socio‐Economic Panel–Innovation...

How does patent examination influence access to finance for innovative firms? We exploit a reform to the UK's patent system that introduced substantive examination to the patent application process, improving the information available to potential investors on the value of firms' patents. Using...

Divergent trends in income and consumption inequality - with the first increasing substantially more than the latter - are an established, stylized fact for the US economy in the last decades. The same time period also experienced a steady increase in household debt, plausibly not independent...

Public debt has increased steadily over the years, leaving many countries at risk of debt distress and even pushing some to default. This paper analyses the impact of sovereign default on post-default debtto-GDP ratios in 144 countries from 1980 to 2019. Applying the entropy balancing method, we...

Progress on the Sustainable Development Goals (SDGs) is increasingly hampered by insufficient funding. This Policy Brief, drawing on insights from a roundtable held in the context of the Hamburg Sustainability Conference (HSC) with experts from the Americas, Africa, Europe, and Asia, examines...

This volume contains the papers presented at the conference "Reich, Recht und Schulden," which took place on September 12, 2025, at the House of Finance of Goethe University Frankfurt am Main. The papers address various aspects of the financial history of the Holy Roman Empire between 1648 and...

FinTech-based lending has rapidly expanded in emerging economies, offering convenience and inclusion but also raising concerns about over-indebtedness. In Indonesia, the surge of digital loans has been accompanied by growing signs of risky borrowing behavior, including late payments, high...

Debt financing is important for financing major investments in the biopharmaceutical industry. Debt financing allows companies to raise funds without giving up ownership or control through indenture and covenants of the company. In this study, I analyze the effects of debt financing decisions on...

Understanding how firms finance their activities is crucial for fostering economic growth. The financial life cycle is a critical framework for understanding how firms' financing needs and strategies evolve over time. This paper examines the capital structure choices of Italian SMEs focusing on...

Germany is undergoing a major shift in fiscal policy. In response to recent crises and long-term structural challenges, the federal government has introduced a debt-financed spending package that marks a significant departure from past fiscal orthodoxy. This paper investigates the macroeconomic...