The Global Dimension to Fiscal Sustainability

• Tác giả: Joseph P Byrne
• Ngôn ngữ: eng
• Ký hiệu phân loại: 339.52 Use of fiscal policy
• Thông tin xuất bản: 2012
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 311752
• Chủ đề: 1. Debt Management; 2. Fiscal Policy E620; 3. National Debt; 4. National Deficit; 5. Surplus H620

Tóm tắt

This paper provides a new perspective of fiscal sustainability and financial globalization in emerging and industrial countries. We highlight the importance of global capital market shocks for fiscal sustainability, a relationship which has hitherto been ignored in the empirical literature. Using a factor model we demonstrate that the relationship between deficit and debt is conditional upon a global factor and we suggest that this global factor is related to world-wide liquidity. We also demonstrate that this acts as a constraint on emerging market economies' fiscal policy.