We investigate the bilateral relationship between government budget balances and current account balances for Portugal … and Germany. We find that the response of the current account balance to the budget balance is greater in Portugal than in … Germany. On the other hand, the response of the budget balance to the current balance is higher in Germany than in Portugal …

We assess the drivers of fiscal sustainability in Portugal during the period 1999Q4-2021Q4. We resort to expanding … the debt-to-GDP ratio. Our results show the prevalence of a Ricardian fiscal regime in Portugal. If the (i-g) differential … financial assistance program to Portugal, between 2011Q2 and 2014Q2. …