The limits of limitless debt

Kent Osband, Valerio Filoso and Salvatore Capasso

Journal of Macroeconomics, 2024, vol. 79, issue C

Abstract: While low real interest rates and issuing public debt in fiat money safeguard against rising sovereign debt-to-GDP ratios, evidence shows that high debt often precedes default, and credit spreads may not signal imminent risk.

Keywords: Bond market; Bond interest rate; Credit spreads sovereign debt; Sovereign debt default; Debt management surprise (search for similar items in EconPapers)
JEL-codes: D84 G12 H63 (search for similar items in EconPapers)
Date: 2024
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Working Paper: The Limits of Limitless Debt (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:79:y:2024:i:c:s0164070423000678

DOI: 10.1016/j.jmacro.2023.103567

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