Fiscal discipline an essential investor benchmark
A country's primary balance - its fiscal balance minus any interest payments - is an important signalling device to investors regarding sovereigns' commitment to repay debts, finds new research form the Central Bank of Turkey.
The tool is especially valuable when a country's debt-to-GDP level has exceeded a certain threshold, or when interest rates are high, because in those circumstances the committed but non-fully-credible government can show that it is willing to forgo the benefits of
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