Munich Personal RePEc Archive

Assessing Sustainability of the Irish Public Debt

Kumar, Saten and Paradiso, Antonio (2011): Assessing Sustainability of the Irish Public Debt.

[img]
Preview
PDF
MPRA_paper_35295.pdf

Download (278kB) | Preview

Abstract

This paper utilizes a small-scale econometric model to study the dynamics of the Irish debt-to-GDP ratio. The role of world GDP growth, domestic GDP growth, real effective exchange rate, interest rate and primary balance is analyzed in the debt dynamics. We find that the Irish economy will recover to its normal path by 2015. Policy interventions for higher primary balance and output growth, and the external positive scenarios for variables such as the world GDP growth, rate of interest and real effective exchange rate are desirable to help further reduce the debt path.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.