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Issuing GDP-linked bonds : supply and demand can match

Fournier, Jean-Marc; Lehr, Jakob - 2018

from GLBs and hence can accept a larger risk premium on GLBs. For the investors’ side, risk premia compensating for GDP … particular, the possible reduction in the default risk premium is ignored. Even so, both high-risk and low-risk countries can … benefit from GLBs: the ones that have to pay a larger risk premium are those that need this insurance against debt crises the …

Persistent link: https://www.econbiz.de/10011914308

How to achieve growth- and equity-friendly fiscal consolidation? : a proposed methodology for instrument choice with an illustrative application to OECD countries

Cournède, Boris; Goujard, Antoine - 2013

Despite sustained efforts made in recent years to rein in budget deficits, a majority of OECD countries still face substantial fiscal consolidation needs. The choices made about which spending areas to curtail and which taxes to hike will have implications for near-term activity and long-term...

Persistent link: https://www.econbiz.de/10010231024

The effect of government debt, external debt and their interaction on OECD interest rates

Turner, David; Spinelli, Francesca - 2013

In the wake of the financial crisis there has been renewed focus on the importance of a country’s net external debt position in determining domestic interest rates and, relatedly, its vulnerability to a crisis. This paper extends the panel estimation of OECD countries described in Turner and...

Persistent link: https://www.econbiz.de/10010231409

Improving the fiscal framework to enhance growth in an era of fiscal consolidation in Slovakia

Klein, Caroline; Price, Robert W.; Wörgötter, Andreas - 2013

The challenge for fiscal policy in Slovakia is to achieve fiscal consolidation in a way which supports the fragile recovery and protects spending on areas which are important for re-embarking on a trajectory of high trend growth and underpinning a catch-up in living standards. While the recently...

Persistent link: https://www.econbiz.de/10009711240

Ensuring debt sustainability amid strong economic uncertainty in Hungary

Beynet, Pierre; Kierzenkowski, Rafał - 2012

Despite a deep recession in 2009 and weak growth in subsequent years, Hungary’s fiscal position compares favourably with many other OECD countries. Nonetheless, the underlying fiscal balance started deteriorating in 2010 and 2011. Recognising this, Hungary’s government launched an ambitious...

Persistent link: https://www.econbiz.de/10009690137

Bringing Belgian public finances to a sustainable path

Koźluk, Tomasz; Jousten, Alain; Høj, Jens - 2012

Economic growth is projected to be strengthening from mid-2011 onwards, but will be insufficient to restore the sustainability of public finances. The Belgian strategy to prefund ageing costs by generating fiscal surpluses to bring down public debt was derailed by the global crisis. Restoring...

Persistent link: https://www.econbiz.de/10009690151

Assessing the sensitivity of Hungarian debt sustainability to macroeconomic shocks under two fiscal policy reactions

Beynet, Pierre; Paviot, Edouard - 2012

Hungarian debt level has steadily increased since 2001, with the debt-to-GDP ratio reaching about 84% at end-2011. This high level combined with significant volatility of macroeconomic variable influencing potential future debt paths – GDP growth, exchange rate and interest spreads – put...

Persistent link: https://www.econbiz.de/10009690186

Portugal : solid foundations for a sustainable fiscal consolidation

Haugh, David; Sorbe, Stéphane - 2012

Owing to slow growth and a relatively weak fiscal position, Portugal’s public debt had been rising for almost a decade when the global crisis struck, sharply increasing the deficit. The loss of confidence in Portuguese and other euro area sovereign bonds required international financial...

Persistent link: https://www.econbiz.de/10009690910

Portugal : assessing the risks around the speed of fiscal consolidation in an uncertain environment

Sorbe, Stéphane - 2012

This paper illustrates possible trade-offs between two different fiscal consolidation strategies in Portugal: sticking to the nominal fiscal targets in the EU-IMF programme or allowing automatic stabilisers to work, while sticking to the structural primary deficit targets implied by the...

Persistent link: https://www.econbiz.de/10009690911

Debt and macroeconomic stability : debt and the business cycle

Ziemann, Volker - 2012

Using a large panel of OECD countries this paper studies the link between debt and macroeconomic stability by comparing the evolution of balance sheet aggregates and economic output in high- and lowdebt environments. While the relationship between debt and economic growth has been extensively...

Persistent link: https://www.econbiz.de/10009696437