Assessing Fiscal Sustainability

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  • Assessing Fiscal Sustainability Book Detail

  • Author : Mr.Enzo Croce
  • Release Date : 2003-07-01
  • Publisher : International Monetary Fund
  • Genre : Business & Economics
  • Pages : 35
  • ISBN 13 : 1451856563
  • File Size : 73,73 MB

Assessing Fiscal Sustainability by Mr.Enzo Croce PDF Summary

Book Description: To monitor fiscal sustainability, this paper proposes a recursive algorithm derived from the law of motion of the debt-to-GDP ratio, subject to a government reaction function that links convergence to the targeted debt ratio with primary fiscal surpluses. Based on quarterly estimates of this algorithm in the 1990s, 12 developed and developing countries are ranked according to their degree of sustainability. For a number of countries, the paper finds evidence of causality between the fiscal policy stance and growth-adjusted real interest rates.

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Assessing Fiscal Sustainability

Assessing Fiscal Sustainability

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To monitor fiscal sustainability, this paper proposes a recursive algorithm derived from the law of motion of the debt-to-GDP ratio, subject to a government rea