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..
Estudio
Autor externo
Giancarlo Corsetti
Acerca de este documento
Tipo de publicación
Ámbito político
Palabra clave
- análisis económico
- análisis económico
- ASUNTOS FINANCIEROS
- ayuda macrofinanciera
- Banco Central Europeo
- deuda pública
- ECONOMÍA
- economía monetaria
- equilibrio presupuestario
- Estado miembro UE
- finanzas de la Unión Europea
- Fondo Monetario Internacional
- GEOGRAFÍA
- geografía económica
- hacienda pública y política presupuestaria
- instituciones de la Unión Europea y función pública europea
- liquidez
- mecanismo de apoyo
- Naciones Unidas
- ORGANIZACIONES INTERNACIONALES
- programa de estabilidad
- relaciones monetarias
- UNIÓN EUROPEA
- zona euro