Illustration for EconPol Working Paper 20

Stock flow adjustments in sovereign debt dynamics: the role of fiscal frameworks

Working Paper
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In our latest working paper, António Afonso and João Tovar Jalles assess, via system GMM, how Stock Flow Adjustments (SFA) affect the debt-to-GDP ratio in 65 countries (covering developed and emerging and low-income countries) between1985-2014. They find that SFAs positively contribute to the change in the debt-to-GDP ratio with a coefficient close to one.