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The dynamics of French public debt: Paths for fiscal consolidations

Author

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  • Esposito, Piero
  • Paradiso, Antonio
  • Rao, B. Bhaskara

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.

Suggested Citation

  • Esposito, Piero & Paradiso, Antonio & Rao, B. Bhaskara, 2011. "The dynamics of French public debt: Paths for fiscal consolidations," MPRA Paper 32564, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:32564
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    References listed on IDEAS

    as
    1. Oliver Röhn, 2010. "New Evidence on the Private Saving Offset and Ricardian Equivalence," OECD Economics Department Working Papers 762, OECD Publishing.
    2. Carlo A. Favero & Massimiliano Marcellino, 2005. "Modelling and Forecasting Fiscal Variables for the Euro Area," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(s1), pages 755-783, December.
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    More about this item

    Keywords

    Debt to GDP Ratio; French Economy; International Factors;
    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
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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