A Note on the (Un)Pleasant Arithmetic of Fiscal Policy: The Case of Italian Public Debt

Autor:	Luigi Marattin, Massimiliano Marzo
Přispěvatelé:	Marattin L., Marzo M.
Rok vydání:	2009
Předmět:	Macroeconomics Economics and Econometrics media_common.quotation_subject Debt-to-GDP ratio PUBLIC DEBT Fiscal policy FISCAL POLICY Stability and Growth Pact Debt Economics Internal debt Debt levels and flows Arithmetic Budget constraint Public finance media_common
Zdroj:	Economic Notes. 38:169-183
ISSN:	1468-0300 0391-5026
DOI:	10.1111/j.1468-0300.2009.00212.x
Popis:	Using the simple arithmetic of government budget constraint, we perform an illustrative analysis on the Italian case, investigating the consequences on the main public finance aggregates of the adoption of a fiscal policy rule responding to past real debt/GDP ratio. Such a rule, firmly grounded in the economic analysis, would allow the reduction of Italy's outstanding stock of debt without requiring the strict adherence to the 3 per cent criterion for deficit/GDP ratio, as prescribed by SGP (Stability and Growth Pact). We perform a forecasting exercise under five alternative scenarios and analyse the details of a structural debt reduction strategy with alternative yearly step.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::994c7b1ccc8abf5aa42736f611f363e8 https://doi.org/10.1111/j.1468-0300.2009.00212.x Zobrazit plný text záznamu Plný text ve formátu PDF