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That Squeezing Feeling [electronic resource] : The Interest Burden and Public Debt Stabilization, Debrun, Xavier.

Author/Creator:
Debrun, Xavier.
Publication:
Washington, D.C. : International Monetary Fund, 2013.
Format/Description:
Government document
Book
1 online resource (30 p.)
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 13/125.
IMF Working Papers; Working Paper No. 13/125
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Local subjects:
Annual budget. (search)
Budget balance. (search)
Budget balances. (search)
Budget constraint. (search)
Comparative or Joint Analysis of Fiscal and Monetary or Stabilization Policy. (search)
Debt. (search)
Debt burden. (search)
Debt Management. (search)
Debt service. (search)
Deficit. (search)
Excessive deficits. (search)
Fiscal adjustment. (search)
Fiscal adjustments. (search)
Fiscal affairs. (search)
Fiscal behavior. (search)
Fiscal consolidation. (search)
Fiscal costs. (search)
Fiscal developments. (search)
Fiscal effort. (search)
Fiscal impact. (search)
Fiscal Policy. (search)
Fiscal policy response. (search)
Fiscal prudence. (search)
Fiscal reaction. (search)
Fiscal reaction function. (search)
Fiscal reaction functions. (search)
Fiscal retrenchments. (search)
Fiscal space. (search)
Fiscal variables. (search)
Government expenditures. (search)
Government revenue. (search)
Interest expenditure ratios. (search)
Interest payments. (search)
Interest rates. (search)
National fiscal rules. (search)
Primary budget balance. (search)
Primary expenditure. (search)
Public debt. (search)
Public expenditures. (search)
Public Expenditures, Investment, and Finance. (search)
Public spending. (search)
Tax revenues. (search)
Taxation. (search)
Belgium. (search)
Bulgaria. (search)
France. (search)
Italy. (search)
Korea, Republic of. (search)
Romania. (search)
Saint Lucia. (search)
Slovak Republic. (search)
Spain. (search)
Summary:
The paper explores the extent to which the pressure of debt service on other spending items may push governments to embark on fiscal consolidation beyond what is strictly necessary to secure solvency. The empirical analysis identifies thresholds of interest bill indicators beyond which governments appear to shift to policies aimed at durably curbing the debt trajectory. Hence, in the current context of high inherited public debts, countries experiencing rising borrowing costs and interest payments would be more likely to enact more aggressive fiscal consolidations than warranted by strict solvency concerns. Conversely, those benefiting from persistently low interest rates despite rising debt stocks would likely opt for a more gradual fiscal consolidation path than what solvency considerations would normally dictate.
Notes:
Description based on print version record.
Contributor:
Debrun, Xavier.
Kinda, Tidiane.
Other format:
Print Version:
ISBN:
1484321731:
9781484321737
ISSN:
1018-5941
Publisher Number:
10.5089/9781484321737.001
Access Restriction:
Restricted for use by site license.