Debt Sustainability Assessments: The state of the art
The approach to Debt Sustainability Assessments (DSAs) has substantially evolved after the global crisis, consistent with the goal of improving detection of high and low frequency risks. DSAs cover an increasing number of indicators, systematically look into implicit and contingent liabilities, and use statistical methods to quantify “tail events”. They also operationalize debt limits, by adopting thresholds for debt and payment flows to single out enhanced vulnerability. While these developments mark true progress, this paper focuses on liquidity risk, contagion risk and the identification of debt limits as critical areas limiting DSA effectiveness, explains why DSA should embed potentially available official support and how an incomplete lending architecture is a hurdle for DSA. The paper concludes with a comparative assessment of current standard DSAs, suggests directions for further improvement and discusses the correct use of DSAs in light of the strengths and weaknesses inherent in the underlying methodologies..
Étude
Auteur externe
Giancarlo Corsetti
À propos de ce document
Type de publication
Domaine politique
Mot-clé
- analyse économique
- analyse économique
- assistance macrofinancière
- Banque centrale européenne
- dette publique
- FINANCES
- finances de l'Union européenne
- finances publiques et politique budgétaire
- Fonds monétaire international
- GÉOGRAPHIE
- géographie économique
- institutions de l'Union européenne et fonction publique européenne
- liquidité monétaire
- mécanisme de soutien
- Nations unies
- ORGANISATIONS INTERNATIONALES
- programme de stabilité
- relations monétaires
- UNION EUROPÉENNE
- zone euro
- ÉCONOMIE
- économie monétaire
- équilibre budgétaire
- État membre UE