We analyze the effects of a debt relief, that is, decrease in public low-income country financed by high-income country, on environmental quality. Under perfect mobility assets, relief increases overall capital stock, and quality when abatements are sufficiently efficient. Welfare both countries can also improve. weak does no more increase richest but This comes from crowding-out effect which t...

In response to the economic crisis unleashed by Covid-19 pandemic, EU authorities have launched extraordinary fiscal and monetary measures in support of member states. The impact these is great significance for Italy, third-largest economy, which as a result pandemic has suffered dramatic decline GDP, further rise government debt GDP ratio. Building on stock-flow consistent, structural macro-ec...

This paper argues that excessive international private debt increases the frequency and severity of sovereign crises. I develop a quantitative theory public allows me to measure level overborrowing its effect on interest rate spread paid debt. In an environment where credit is constrained by market value income, individually optimal borrowing decisions are inefficient at aggregate level. High p...

Can microfinance borrowers use the discipline of regular loan repayments in order to accumulate savings if prompted to do so? In an experiment, we offered commercial savings products to the microfinance borrowers of Guatemala’s largest public-sector bank. We find that giving these borrowers the opportunity to develop a saving plan and be reminded of saving at the time of loan repayment caused n...

As recent experience suggests, the most significant economic fluctuations are those that combine real and financial factors. This paper works out a simple model that couples a version of Goodwin's (1967) growth cycle model of real fluctuations with insights drawn from a model of financial fluctuations based on Minsky's financial instability hypothesis (Vercelli, 2000; Sordi and Vercelli, 2006, ...

Strategic and collective efforts are needed from both the creditors borrowing countries facing looming debt crisis, with a full understanding of what good debts bad depending on how they used. The current narrative sustainability often ignores issue government owns (assets) versus owes (liabilities). While conventional approaches largely focus liability side, kinds assets country tries to build...

We model the expansion decision of a levered firm. Straight debt distorts both timing and scaling: firm invests less later than its all-equity financed counterpart. The inclusion performance sensitivity in contract mitigates such distortions. Moreover, is consistent with value maximization within standard trade-off theory capital structure. As result, our rationalizes widespread use sensitive (...

 Governments attempt to achieve the goals of low inflation rate and sustainable economic growth rate. The objective of this study is to analyze the roles of determinants such as the liquidity of money, weighted average of interest (profit) rate on banking deposits, exchange rate and the public debt on inflation and economic growth in Iran, using the quarterly data during the period of 1989-2008...