Write a research project discussing a topic on Debt Sustainability
The paper should follow the basic structure:
I. The paper should start with a short introduction/motivation section. Why should anyone care about your topic? Here talk about specifics, current events, politics, etc. (~1 pg). Be sure to establish a clear thesis (argument/focus) and lay out preliminary support you will reference throughout the next section.
– Use sources from reputable publications here (NY Times, Wall Street Journal, Economist, etc)
II. Next, you are expected to review the major contributions on the topic and the current state of the literature, citing at minimum five sources scholarly sources. This should be the bulk of your paper (~3-4 pgs). It is a literature review of your topic. If you have a specific topic (e.g. a specific trade deal, etc) then be sure to generalize your topic for this section. So if you were discussing NAFTA or Brexit, you would want to discuss recent literature on free trade agreements/areas for the literature review. Here you want to discuss general theories on your topic so that you can establish the necessary economic relationships.
– Use scholarly sources here (Journal Articles, Federal Reserve, IMF or NBER Studies, etc)
III. Extension. You just reviewed the literature on a specific subject. Here you should suggest an extension to the current literature (~.5 pgs). What is missing from the literature you reviewed (could be a new data set, case study, research methodology)?
IV. Conclusion. Wrap it up. Tie together the support presented above to call back to main thesis (~ .5 pg).
V. Reference Section that links to in-text citations. Use any citation format you choose (APA, MLA, etc), just be consistent throughout the paper. If you choose to, you can simply footnote within the text and forego this section.
Sample Solution
Debt sustainability is a critical issue for many countries around the world.
Sample Solution
Debt sustainability is a critical issue for many countries around the world.
Introduction
Debt sustainability is a critical issue for many countries around the world. Rising debt levels can lead to a number of problems, including increased interest payments, decreased government spending, and even default. In recent years, debt levels have been rising in many countries, due to a combination of factors such as low interest rates, increased government spending, and financial crises.
This paper will discuss the concept of debt sustainability and the factors that affect it. The paper will also review the recent literature on debt sustainability and suggest some extensions to the current literature.
Literature Review
The concept of debt sustainability was first developed by the IMF in the early 1990s. The IMF’s debt sustainability framework is based on the idea that a country’s debt is sustainable if the government is able to meet its current and future debt obligations without resorting to exceptional financial assistance or default.
The IMF’s debt sustainability framework has been used by many countries to assess their debt situation. The framework has also been used by the World Bank and other development organizations.
The recent literature on debt sustainability has focused on a number of factors that affect debt sustainability. These factors include:
- The level of government debt
- The growth rate of the economy
- The interest rate on government debt
- The government’s fiscal policy
- The country’s external debt
Extension to the Literature
The current literature on debt sustainability has a number of limitations. One limitation is that the literature focuses primarily on developed countries. There is a need for more research on debt sustainability in developing countries.
Another limitation of the literature is that it does not fully account for the role of financial crises in debt sustainability. Financial crises can lead to a sudden increase in government debt, which can make it more difficult for countries to achieve debt sustainability.
Conclusion
The concept of debt sustainability is an important one for many countries around the world. The recent literature on debt sustainability has identified a number of factors that affect debt sustainability. However, there is still a need for more research on debt sustainability, particularly in developing countries and in the context of financial crises.
References
- IMF. (2002). Debt sustainability analysis. Washington, DC: International Monetary Fund.
- World Bank. (2005). Debt sustainability in low-income countries: A framework for analysis. Washington, DC: World Bank.
- Cruces, J. J., & Trebesch, C. (2013). Debt and growth: Is there a magic threshold? Journal of Development Economics, 104(1), 1-22.
- Panizza, U., & Presbitero, A. F. (2014). Sovereign debt restructuring: A review of the literature. IMF Economic Review, 62(1), 117-148.
