Fiscal consolidation and the sustainability of public debt in the GIPSI countries

  1. Antelo, Manel
  2. Peón, David
Revista:
Cuadernos de economía: Spanish Journal of Economics and Finance

ISSN: 2340-6704,  0210-0266

Ano de publicación: 2014

Volume: 37

Número: 103

Páxinas: 52-71

Tipo: Artigo

DOI: 10.1016/J.CESJEF.2013.10.002 DIALNET GOOGLE SCHOLAR lock_openBiblos-e Archivo editor

Outras publicacións en: Cuadernos de economía: Spanish Journal of Economics and Finance

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 growth, 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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Información de financiamento

Insightful comments and suggestions by A. Costas, F. del Río and D. García‐Coto are gratefully acknowledged. M.A. also acknowledges financial aid received from the Galician Regional Government (Xunta de Galicia) through Grant GPC 2013‐045.

Financiadores

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