Fiscal Sustainability and Public Debt Risks: A Comparative Macroeconomic Study of Advanced and Emerging Economies

In the post-pandemic world economy, public debt has reached unprecedented levels. Fiscal sustainability and debt risk management have thus become central to macroeconomic stability. This paper reviews theoretical and empirical perspectives on fiscal sustainability and compares how advanced economies and emerging market economies differ in debt dynamics, risk structures, and policy responses. It discusses key indicators such as the debt-to-GDP ratio, fiscal deficit, and the interest-growth differential (r-g). The findings reveal that while advanced economies can sustain high debt levels due to institutional credibility and negative r-g, emerging markets remain vulnerable to external shocks and refinancing pressures. This comparative analysis underscores the necessity of context-specific, multi-dimensional frameworks for assessing fiscal health, moving beyond a one-size-fits-all approach based solely on debt thresholds. The paper concludes with suggestions for future research directions, including the integration of institutional quality and climate-related fiscal risks into sustainability analysis.