An international empirical study on the fiscal surplus from the perspective of sectoral balances
The simultaneous recording of public surplus with current account deficit in a national economy could be related to strong private leverage that usually ends in financial crisis, what would make the public surplus unsustainable. The objective of this work is to check the extent to which this claim...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Universidad de Huelva
2023-04-01
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| Series: | Revista de Economía Mundial |
| Subjects: | |
| Online Access: | https://www.uhu.es/publicaciones/ojs/index.php/REM/article/view/7094 |
| _version_ | 1797267348810366976 |
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| author | Eduardo Garzón Espinosa Esteban Cruz Hidalgo Bibiana Medialdea García Carlos Sánchez Mato |
| author_facet | Eduardo Garzón Espinosa Esteban Cruz Hidalgo Bibiana Medialdea García Carlos Sánchez Mato |
| author_sort | Eduardo Garzón Espinosa |
| collection | DOAJ |
| description |
The simultaneous recording of public surplus with current account deficit in a national economy could be related to strong private leverage that usually ends in financial crisis, what would make the public surplus unsustainable. The objective of this work is to check the extent to which this claim is bolstered by empirical support. The results reveal that, in effect, the concurrence of public surpluses and current account deficits is associated with private leverage processes and financial crises. These outcomes question the design of the current fiscal rules since they don’t pay attention to the current account balance.
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| first_indexed | 2024-04-25T01:15:10Z |
| format | Article |
| id | doaj.art-c6410a59e31f4bda9b160dc0a3831851 |
| institution | Directory Open Access Journal |
| issn | 1576-0162 2340-4264 |
| language | English |
| last_indexed | 2024-04-25T01:15:10Z |
| publishDate | 2023-04-01 |
| publisher | Universidad de Huelva |
| record_format | Article |
| series | Revista de Economía Mundial |
| spelling | doaj.art-c6410a59e31f4bda9b160dc0a38318512024-03-09T11:48:44ZengUniversidad de HuelvaRevista de Economía Mundial1576-01622340-42642023-04-016310.33776/rem.vi63.7094An international empirical study on the fiscal surplus from the perspective of sectoral balancesEduardo Garzón EspinosaEsteban Cruz Hidalgo0Bibiana Medialdea García1Carlos Sánchez Mato2Universidad de ExtremaduraUniversidad Complutense de MadridUniversidad Complutense de Madrid The simultaneous recording of public surplus with current account deficit in a national economy could be related to strong private leverage that usually ends in financial crisis, what would make the public surplus unsustainable. The objective of this work is to check the extent to which this claim is bolstered by empirical support. The results reveal that, in effect, the concurrence of public surpluses and current account deficits is associated with private leverage processes and financial crises. These outcomes question the design of the current fiscal rules since they don’t pay attention to the current account balance. https://www.uhu.es/publicaciones/ojs/index.php/REM/article/view/7094sectoral balancesmacroeconomic frameworkpublic surplusprivate debtfinancial instability |
| spellingShingle | Eduardo Garzón Espinosa Esteban Cruz Hidalgo Bibiana Medialdea García Carlos Sánchez Mato An international empirical study on the fiscal surplus from the perspective of sectoral balances Revista de Economía Mundial sectoral balances macroeconomic framework public surplus private debt financial instability |
| title | An international empirical study on the fiscal surplus from the perspective of sectoral balances |
| title_full | An international empirical study on the fiscal surplus from the perspective of sectoral balances |
| title_fullStr | An international empirical study on the fiscal surplus from the perspective of sectoral balances |
| title_full_unstemmed | An international empirical study on the fiscal surplus from the perspective of sectoral balances |
| title_short | An international empirical study on the fiscal surplus from the perspective of sectoral balances |
| title_sort | international empirical study on the fiscal surplus from the perspective of sectoral balances |
| topic | sectoral balances macroeconomic framework public surplus private debt financial instability |
| url | https://www.uhu.es/publicaciones/ojs/index.php/REM/article/view/7094 |
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