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Vztah mezi saldem hospodaření a dluhem vládních institucí
[Relation Between Government Balance and Debt]

Author

Listed:
  • Václav Rybáček
  • Petr Musil

Abstract

The relation between government deficit and debt is not straightforward and draws intensive attention of users and analysts. In reality, surplus balances can accompany increasing debt even in the long term. The objective of the paper is thus to scrutinize, by analysing international data, the closeness of both aggregates, which is essential for assessment of the long-term sustainability of public finances. The text explains factors entering between both macroeconomic indicators, as they are currently defined. Furthermore, the text discusses alternatives to currently defined debt and their closeness to the government final balance. The development of indicators is analysed using data for the Czech Republic. Within the data availability constraints, an international comparison of balance sheet indicators is presented.

Suggested Citation

  • Václav Rybáček & Petr Musil, 2020. "Vztah mezi saldem hospodaření a dluhem vládních institucí [Relation Between Government Balance and Debt]," Politická ekonomie, Prague University of Economics and Business, vol. 2020(4), pages 462-482.
    • Handle: RePEc:prg:jnlpol:v:2020:y:2020:i:4:id:1290:p:462-482
    DOI: 10.18267/j.polek.1290
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    References listed on IDEAS

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    1. Milesi-Ferretti, Gian Maria, 2004. "Good, bad or ugly? On the effects of fiscal rules with creative accounting," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 377-394, January.
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    3. von Hagen, Jurgen & Wolff, Guntram B., 2006. "What do deficits tell us about debt? Empirical evidence on creative accounting with fiscal rules in the EU," Journal of Banking & Finance, Elsevier, vol. 30(12), pages 3259-3279, December.
    4. Miss Anke Weber, 2012. "Stock-Flow Adjustments and Fiscal Transparency: A Cross-Country Comparison," IMF Working Papers 2012/039, International Monetary Fund.
    5. William Easterly, 1999. "When is fiscal adjustment an illusion?," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 14(28), pages 56-86.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    convergence criteria; balance; debt; government;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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