Fiscal consolidation and the sustainability of public debt in the GIPSI countries
Correcting fiscal imbalances and reducing public debt is a priority among the peripheral countries of the Eurozone (the so-called GIPSI countries). However, there is no consensus about which is the most appropriate policy mix to achieve it: the debate on fiscal austerity vs. growth is bitter now amo...
| Autores: | , |
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| Formato: | artículo |
| Fecha de publicación: | 2014 |
| País: | España |
| Recursos: | Universidad Autónoma de Madrid |
| Repositorio: | Biblos-e Archivo. Repositorio Institucional de la UAM |
| Idioma: | inglés |
| OAI Identifier: | oai:repositorio.uam.es:10486/682466 |
| Acesso em linha: | http://hdl.handle.net/10486/682466 |
| Access Level: | acceso abierto |
| Palavra-chave: | Fiscal consolidation Austerity Growth Public debt Government spending multiplier GIPSI countries Economía |
| Resumo: | Correcting fiscal imbalances and reducing public debt is a priority among the peripheral countries of the Eurozone (the so-called GIPSI countries). However, there is no consensus about which is the most appropriate policy mix to achieve it: the debate on fiscal austerity vs. growth is bitter now among researchers and international policymakers. In this paper we review the effects of different fiscal consolidation policies on macroeconomic performance. We also provide an empirical analysis that complements the recent study performed by the IMF regarding the sustainability of public debt for GIPSI countries in different scenarios of grpwth inflation, and fiscal and monetary policies. Finally, a policy mix is offered that would be suitable for these five countries to achieve both fiscal consolidation and economic growth |
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