NEW APPROACHES TO SUSTAINABILITY OF FISCAL POLICY Cover Image

LES NOUVELLES APPROCHES DE SOUTENABILITÉ DE LA POLITIQUE BUDGÉTAIRE
NEW APPROACHES TO SUSTAINABILITY OF FISCAL POLICY

Author(s): Samia Omrane Belguith
Subject(s): Economic policy, Welfare systems
Published by: Editura Bibliotheca
Keywords: fiscal policy; sustainability; debt; budget constraint; fiscal reaction function

Summary/Abstract: The recent international financial crisis has led to the increase in public debt that has reached unprecedented levels, which has raised many concerns about the sustainability of public finances of European countries and emerging ones. This has led governments to adopt from 2009 austerity measures to stabilize the trajectory of public debt. Various approaches are used to test the sustainability of public debt as the accounting and the actuarial approach. However, these methods have presented many shortcomings which required the adoption of new approaches, such as the estimation of fiscal reaction function, stochastic simulations and using overlapping generations’ models.

  • Issue Year: 2016
  • Issue No: 1 (30)
  • Page Range: 51-73
  • Page Count: 23
  • Language: French
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