Public debt and financial stability: The case of economic community and monetary union of central Africa (EMCCA)

摘要

This article analyzes the relationships between public debt and financial stability. Unlike traditional approaches based on linear panels (dynamic or static), we estimate a nonlinear regime change panel (PSTR) characterizing the relationships between public debt and financial stability for the member countries of the Economic Community, and Monetary Union of Central Africa (EMCCA). The results show that the public debt has contrasted effects on financial stability in EMCCA, according to regimes determined by the evolution of the price of oil.