Monetary and Financial Issues

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News

Explaining the interest-rate-growth differential underlying government debt dynamics

02-Jan-2012

The differential between the interest rate paid to service government debt and the growth rate of the economy is a key concept in assessing fiscal sustainability. Among OECD economies, this differential was unusually low for much of the last decade compared with the 1980s and the first half of the 1990s.

Capital flows and financial fragility

28-Oct-2011

This project explores how the structure of international capital flows drives financial fragility. Based on new OECD empirical analysis, it highlights the role of international financial integration in transmitting contagion shocks and assesses whether global current account imbalances are driven by strong demand for safe assets from emerging economies.




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