Coming Down to Earth: How to Tac­kle Soa­ring Public Debt

This paper examines policy options for reducing debt ratios, including the effects of fiscal consolidation and debt restructuring. We find that adequately timed and designed fiscal consolidations have a high probability of durably reducing debt ratios. In addition, the impact of restructuring on debt ratios is sizable and long lasting but can be affected by operational details and institutional features.