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...

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Detalhes bibliográficos
Autores: Antelo, Manel, Peón, David
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
Descrição
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