What Do We Know About Debt? A Literature Review

Inida NOGA, Edmond ÇERA, Teuta MUSARAJ

Abstract Governments finance their budget deficit, import-export gap, and “feed” growth using debt. There are many reasons why to study debt, but the most important question addressed here is what we know about debt and what is the current situation related to the Albanian debt. Debt has multi-links through macroeconomic components of an economy. Albania seems that will have difficulties in the near future because its debt-to-GDP ratio has already exceeded the 60% level. This emphasises the need to observe the debt. We focus in literature review trying to sort out some answers. There are many questions refer to debt and many ways how researchers try to get the answers. Few studies for Albanian case are found.
Keywords government debt, Albanian debt, literature review
JEL classification F34, H64
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