Strengthening fiscal policies to ensure fiscal sustainability, efficient and dynamic financing for development, and better debt management in Liberia

Abstract

This policy brief is drawn from a case-study on “Strengthening fiscal policies to ensure fiscal sustainability, efficient and dynamic financing for development, and better debt management in Liberia”. The results of the study are briefly presented and some policy recommendations discussed. The study used annual data from 1990 to 2020 to estimate a vector error correction model (VECM) to determine the relationship between debt relief and selected variables in Liberia. The results show an improvement in the health system, expanding international trade, reducing the exchange rate against the USD and infant mortality could reduce total debt in the long term.