This paper shows that important insights for fiscal policy can be derived from Joseph Schumpeter's academic work. This concerns his fundamental distinction between theories in which the monetary sphere is identical with the real sphere ("real analysis"), and theories in which financial sphere is...

Based on Austria's fiscal stance in 1995, we compute the generational accounts for currently living as well as future generations. The results reveal the existence of an enormous intergenerational imbalance in favor of currently living generations. Total public sector liabilities may be more...

This paper shows that important insights for fiscal policy can be derived from Joseph Schumpeter's academic work. This concerns his fundamental distinction between theories in which the monetary sphere is identical with the real sphere ("real analysis"), and theories in which financial sphere is...

This paper proposes indicators to assess government debt sustainability in the medium and long term. We follow the methodological approach by Bohn (2008) and distinguish three channels that contribute to sustainable government finances: economic growth, real interest payments and fiscal...

On September 15-16, 2011 the annual Macroeconomics Research Workshop took place at Magyar Nemzeti Bank, Budapest, celebrating its 10th year of existence, out of which it was organized jointly with the CEPR for the 4th time. The workshop's title and main theme was ‘Fiscal Rebalancing, Public...

The increased access of African countries to international capital markets has put public debt sustainability once again high on the continent´s policy agenda. Utilizing the "stabilizing primary balance" approach, we find that the primary balances exceeded those required to keep public debt at...

Average gross general government debt-to-GDP ratios in advanced economies have almost reached their highest levels since WWII. Moreover, growing fiscal risks emerge from adverse fiscal-financial linkages and aging societies. Policy-makers should take advantage of the current economic recovery...

Government bonds are interest-bearing assets. Increasing public debt increases income, wealth, and consumption demand. The smaller government expenditure is, the larger consumption demand must be in equilibrium, and the larger must be public debt. Conversely, lower public debt implies higher...

We provide a comprehensive assessment of the relationship between public debt and GDP growth in the postwar advanced economies. We use the timing of changes in public debt and growth to account for endogeneity, and find little evidence of a negative relationship. Semi-parametric estimates do not...

The increased access of African countries to international capital markets has put public debt sustainability once again high on the continentś policy agenda. Utilizing the "stabilizing primary balance" approach, we find that the primary balances exceeded those required to keep public debt at...