PREREQUISITES FOR SUSTAINABLE GOVERNMENT BORROWING WITHIN CURRENCY BOARD SYSTEM
| Autor: | Draksaite, Aura, Snieska, Vytautas, Valodkiene, Gitana, Kauno technologijos universitetas |
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| Rok vydání: | 2016 |
| Předmět: |
Economics and Econometrics
Currency board system government borrowing prerequisites currency board system Financial stability media_common.quotation_subject Scientific literature Valstybės finansai. Biudžetas / Public finance. Budget Presentation Lietuva (Lithuania) Government debt management Order (exchange) 0502 economics and business Economics 050207 economics Business and International Management Government borrowing Engineering (miscellaneous) media_common Finance Government 050208 finance business.industry 05 social sciences Government borrowing prerequisites government debt management Monetary system Finansinis stabilumas government borrowing Currency board Sustainable borrowing sustainable borrowing Sustainability business |
| Zdroj: | Inžinerinė ekonomika [Engineering Economics]. 2016, 27 (2), p. 134-143. |
| ISSN: | 2029-5839 1392-2785 |
| DOI: | 10.5755/j01.ee.27.2.13753 |
| Popis: | Financial stability of an economy is one of the most important priorities in many countries around the world. Although in many cases financial resources are preferably generated within a given economy, often there is a necessity to borrow the funds abroad. In order to maintain the sustainability of the economy, the borrowing abroad also should comply with the certain respective regulations. Specific regulations depend on the peculiarities of the economy itself. There is a complex set of the factors to be considered when analyzing the sustainability of the economy. In this article, the importance of the monetary system arrangement is emphasized, namely the case of currency board system is analyzed. The aim of the paper is to reveal the prerequisites for sustainable government borrowing within currency board system. The main research methods used are systematization and generalization of the scientific literature, quantitative and qualitative analysis of the primary and secondary data, graphic presentation of the data and results. Also the case of Lithuania’s government borrowing is presented. For the evaluation of risk, @Risk package has been used. Conclusions of the paper provide the review of both general and the specific prerequisites for sustainable government borrowing within currency board system. The case study showed that given current government debt management policy and based on an assumption that in similar circumstances economy can perform similarly, it can be stated that in the long run Lithuania’s borrowing can be considered as having the attributes of sustainability. |
| Databáze: | OpenAIRE |
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