Public Debt and Fiscal Policy in Developing Countries
Over the past decade the growth of public spending has generated large fiscal deficits in many countries, leading to increases in the share of public debt relative to gross domestic product (GDP). This happened in both industrial and developing countries. With the exception of a few, small countries such as Ireland and Denmark, the increase in public debt in industrial countries has been mostly domestic. In the developing countries, on the other hand, the public debt has been mostly external, although some countries, including Brazil and Mexico, have also accumulated sizeable domestic debts.
KeywordsInterest Rate Gross Domestic Product Fiscal Policy Public Debt Public Spending
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