The dynamics of French public debt: Paths for fiscal consolidations

Esposito, Piero and Paradiso, Antonio and Rao, B. Bhaskara (2011): The dynamics of French public debt: Paths for fiscal consolidations.

Abstract

We analyze possible targets for the French debt-to-GDP ratio with a small model. The role of the US and German GDP growth, prices of raw materials, ECB monetary policy, and domestic policy is analyzed in the debt dynamics. We find that external conditions, together with policies to stimulate growth and to generate a government surplus, play a fundamental role in the French fiscal consolidation.

• Item Type: MPRA Paper
• Language: English
• Keywords: Debt to GDP Ratio, French Economy, International Factors
• 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

References

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