Vast literature have documented that the Philippine economic crisis from1983-1985 has been due to extravagant fiscal policy and to the proliferation of government-owned and/or controlled corporations. This paper presents an overview of the macroeconomic role and the management framework within...

In a simple stochastic overlapping generation model, individuals work when young and retire when old, generations’ productivity is affected by a serially uncorrelated random shock, and fiat money and nominal public debt are the only storable assets. In this setting, we show that social...

As part of the assessment of the Aquino Administration, this paper investigates the Philippine management on external debt. The insights offered here is valuable to future steps the present and succeeding government might wish to undertake.

We explore the dynamics of public debt in the presence of political shocks, in the form of shocks to preferences for public spending. Under commitment, optimal stabilization is obtained by combining an inflation target that is contingent on the political shock with a debt target that forces the...

The present study analyzes the nature of Ukrainian farm debt by investigating whether the debt servicing problem of Ukrainian farms is more of a debt problem or a net income problem. Net income generation appears to be the more important underlying problem behind the debt problem. Second, the...

This paper examines the temporal relationship of Spanish public debt interest rates over the period from January 1991 to November 1994 between end-of-month observations of Treasury rates of different maturities, ranging from three months to ten years. Applying the cointegration theory, we find...

This paper presents an optimal fiscal policy response to address the basic trade-off between the automatic stabilisation properties of budgets and the long run fiscal positions. The framework is an overlapping generations model la Weil (1989), extended to account for stochastic endowments and...

The mere existence of nominal public debt may create inflationary incentives. This model highlights the fact that public debt may not only affect the credibility of the fixed exchange rate regime, but it also examines possible consequences of high public debt levels when countries that...

Several institutional changes in the last 20 years have imposed to the public administrators the adoption of several policies intended to qualify the State for the new economic order. The expenditure control has turned to be central in the political economy. Regarding the Brazilian states, a...