Esposito, Piero and Paradiso, Antonio and Rao, B. Bhaskara (2011): The dynamics of Spanish public debt and sustainable paths for fiscal consolidation.
Download (441kB) | Preview
This paper analyses possible patterns for the Spain debt-to-GDP ratio with a small macroeconomic model. The role of international macroeconomic variables (such as the US and French GDP growth rates, prices of raw materials, ECB monetary policy stance) and domestic policy instruments is analyzed in the debt dynamics. We find that external conditions, together with policies aimed to stimulate the growth and fulfilling Maastricht restrictions on deficit, play a fundamental role for fiscal consolidation in Spain and help to reach a sustainable pattern.
|Item Type:||MPRA Paper|
|Original Title:||The dynamics of Spanish public debt and sustainable paths for fiscal consolidation|
|Keywords:||Debt to GDP Ratio, Spain Economy, International Factors, SUR|
|Subjects:||E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy
H - Public Economics > H6 - National Budget, Deficit, and Debt > H68 - Forecasts of Budgets, Deficits, and Debt
H - Public Economics > H6 - National Budget, Deficit, and Debt > H63 - Debt ; Debt Management ; Sovereign Debt
|Depositing User:||Antonio Paradiso|
|Date Deposited:||03. Aug 2011 21:09|
|Last Modified:||03. Jan 2016 17:33|
Beetsma, R. M. W. J., Debrun, X. (2005) Implementing the stability and growth pact: Enforcement and procedural flexibility, European Central Bank, Working Paper No. 433.
Casadio, P., Paradiso, A., Rao, B. B. (2011) The dynamics of Italian public debt: Alternative paths for fiscal consolidation, Applied Economics Letters, forthcoming. DOI: 10.1080/13504851.2011.591726.
Favero, C. A. (2002) How do European monetary and fiscal authorities behave? CEPR Discussion Paper, No. 3426, Center for Economic and Policy Research, London, UK.
Favero, C. A., Marcellino, M. (2005) Modelling and forecasting fiscal variables for the Euro Area, Oxford Bullettin of Economics and Statistics, 67, pp 755 – 783.
Galy, M. (1993) Opening up of the Spanish economy in the context of the EC integration, in “Spain: Converging with the European Community”, Galy, M., Pastor, G., Pujol, T. (authors), International Monetary Fund, Washington, DC.
Hasko, H. (2007) Public debt dynamics in selected OECD countries: the role of fiscal stabilization and monetary policy, in “Fiscal Policy: Current Issues and Challenges”, Symposium sponsored by the Bank of Italy.
Rohn, O. (2010) New evidence on the private saving offset and Ricardian equivalence, OECD Economics Departments Working Papers, No. 762, OECD publishing.