Hostland, DouglasGiugale, Marcelo M.2014-02-042014-02-042013-10https://hdl.handle.net/10986/16852Much of Sub-Saharan Africa's post-independence macroeconomic history has been characterized by boom-bust cycles. Growth accelerations have been common, but short lived. Weak policy formulation and implementation led to large external and fiscal imbalances, excessive debt accumulation, volatile inflation, and sharp exchange rate fluctuations. This characterization changed, however, in the mid-1990s, when debt relief and better macroeconomic policy began to provide a source of stability that has helped sustain robust growth throughout much of the region. In resource rich countries, the process was supported over the past few years by a dramatic increase in commodity prices. But resources are only one part of the story. Growth has exhibited impressive resilience even in the face of negative external shocks, as in 2008-2009. While the short-term outlook remains positive, over the medium term policy makers face new challenges. Several countries have the potential to greatly expand natural resource production and become major commodity exporters; volatile resource revenue will complicate their fiscal and monetary planning. Rising investor appetite for financial assets of frontier markets and the development of domestic debt markets will continue to broaden the menu of and trade-offs among financing options at a time when global interest rates may start sloping upward. Complex financing arrangements -- notably for private-public or public-public partnerships in infrastructure -- will become more common and will generate new types of fiscal commitments and contingencies.en-USCC BY 3.0 IGOACTIVE DEBTARREARSBALANCE OF PAYMENTSBANK RATEBASIS POINTBASIS POINTSBENCHMARK BONDBENCHMARK BONDSBENCHMARK YIELDBENCHMARK YIELD CURVEBENCHMARK YIELDSBOND YIELDSBOOM-BUST CYCLESBORROWING STRATEGIESBROAD MONEYBUDGET SURPLUSESBUSINESS CYCLECAPACITY CONSTRAINTSCAPITAL ACCOUNTCENTRAL BANKCOLLATERALCOMMERCIAL BANKSCOMMODITY PRICESCOMPETITIVE EXCHANGE RATESCOMPETITIVENESSCONTINGENT LIABILITIESCONTINGENT LIABILITYCOUPONCREDIBILITYCREDITORCREDITORSCURRENCYCURRENCY CRISESCURRENCY CRISISCURRENCY RISKCURRENT ACCOUNT DEFICITCURRENT ACCOUNT DEFICITSDEBTDEBT ACCUMULATIONDEBT BURDENDEBT BURDENSDEBT ISSUANCEDEBT LEVELSDEBT MANAGEMENTDEBT MATURITIESDEBT OBLIGATIONSDEBT OUTSTANDINGDEBT POLICYDEBT REDUCTIONDEBT RELIEFDEBT SERVICEDEBT SUSTAINABILITYDEFAULT RISKDEPRECIATIONSDEVALUATIONDEVELOPING COUNTRIESDOMESTIC CREDITDOMESTIC CURRENCYDOMESTIC DEBTDOMESTIC DEBT INSTRUMENTSDOMESTIC DEBT MARKETSDOMESTIC MARKETDOMESTIC MARKETSDUTCH DISEASEECONOMIC DEVELOPMENTECONOMIC LIBERALIZATIONEMERGING MARKETEMERGING MARKET ECONOMIESEQUITY INVESTMENTSEUROBONDEXCHANGE RATEEXCHANGE RATE APPRECIATIONSEXCHANGE RATE FLUCTUATIONSEXCHANGE RATE OVERVALUATIONEXCHANGE RATE REGIMESEXCHANGE RATESEXPENDITURESEXPORT DIVERSIFICATIONEXPORT REVENUESEXPORTERSEXPOSUREEXTERNAL DEBTEXTERNAL DEMANDEXTERNAL FUNDINGEXTERNAL SHOCKSFEDERAL RESERVEFINANCIAL ASSETSFINANCIAL CRISISFINANCIAL MANAGEMENTFINANCIAL STABILITYFISCAL BALANCESFISCAL DEFICITSFISCAL IMBALANCESFISCAL POLICYFISCAL POSITIONSFIXED EXCHANGE RATEFLEXIBLE EXCHANGE RATEFLEXIBLE REGIMESFLOATING INTEREST RATEFOOD PRICESFOREIGN CURRENCYFOREIGN CURRENCY EXPOSURESFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTGLOBAL CAPITALGLOBAL CAPITAL MARKETGLOBAL CAPITAL MARKETSGOVERNANCE ISSUESGOVERNMENT DEBTGROWTH PERFORMANCEGROWTH RATEGROWTH RATESHIGH INFLATIONHOLDINGHUMAN DEVELOPMENTINCOME LEVELSINDEBTEDNESSINFLATIONINFLATION RATEINFLATION RATESINFLATIONARY PRESSURESINFRASTRUCTURE INVESTMENTINSTITUTIONAL INVESTORSINSURANCEINSURANCE COMPANIESINTEREST RATESINTERNATIONAL BANKINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL DEBTINTERNATIONAL FINANCIAL STATISTICSINTERNATIONAL TRADEINVESTMENT FINANCESINVESTMENT PROJECTSINVESTMENT RATESINVESTOR BASEINVESTOR CONFIDENCEINVESTOR INTERESTLIABILITY MANAGEMENTLONG-TERM DEBTLOW-INCOME COUNTRIESMACROECONOMIC ENVIRONMENTMACROECONOMIC INSTABILITYMACROECONOMIC MANAGEMENTMACROECONOMIC POLICIESMACROECONOMIC POLICYMACROECONOMIC STABILITYMACROECONOMIC STABILIZATIONMACROECONOMIC VARIABLESMACROECONOMIC VOLATILITYMARKET DEVELOPMENTMARKET ECONOMYMATURITIESMONETARY AUTHORITIESMONETARY AUTHORITYMONETARY FUNDMONETARY POLICYMONETARY STABILITYMONETARY UNIONNATURAL RESOURCEOIL EXPORTERSOIL EXPORTING COUNTRIESOIL EXPORTING COUNTRYOIL PRICEOIL PRICESOIL RESOURCEOIL RESOURCESOIL REVENUEOIL REVENUESOVERVALUATIONPENSIONPENSION FUNDSPOLICY RESPONSEPOLICY RESPONSESPOLITICAL STABILITYPORTFOLIOPORTFOLIO INVESTMENTPOVERTY REDUCTIONPRICE STABILITYPRIVATE BORROWINGPRIVATE INVESTMENTPRIVATE PLACEMENTPROPERTY RIGHTSPUBLIC BORROWINGPUBLIC DEBTPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC SECTOR BORROWINGRAPID GROWTHREAL EXCHANGE RATEREAL EXCHANGE RATE APPRECIATIONRESERVERESERVE BANKRESERVESRETURNSRISK SHARINGRISKY ASSETSRULE OF LAWSOVEREIGN BONDSSOVEREIGN DEBTSOVEREIGN RISKSTRUCTURAL REFORMSTAXTAX TREATMENTTRADE BALANCETRADE OPENNESSTRADE SHOCKSTRANSPARENCYTREASURIESTREASURYTREASURY BILLSTREASURY YIELDWEIGHTSWorld Bank10.1596/1813-9450-6635