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The aim of this paper is to investigate the impact of EU-27 debt on economic growth. The study is based on data from 2013 to 2022. Panel data are used to investigate the relationship between debt and economic growth in the EU using the gretl software package. A fixed effects model is used. The study shows that EU sovereign debt does not have a significant impact on economic growth. It also shows that a growth in the debt share of GDP above 60% is not a significant factor. The calculations show that only interest payments and government spending have an impact on the EU economies. An increase in the level of interest payments has a negative impact on economic growth, while an increase in government spending has a positive impact on the EU economies. [ABSTRACT FROM AUTHOR]

Post-pandemic inflation has worsened monetary stability and threatened public finances around the world. The war in Ukraine is further straining public finances while countries are still recovering from the pandemic. The above circumstances have led to an appreciation of the U.S. dollar in 2022, which poses a challenge to the further development of public debt costs. The dynamics of public debt growth, which exceeded GDP growth in most countries in recent years, has highlighted the importance of efficient public financial management. The public debt of most countries is expressed in the strongest world currencies, mainly the euro and the U.S. dollar. At the same time, the world economy faces a steady appreciation of the dollar, which has peaked against other major currencies. Many developing countries have substantial dollar debts, and when the dollar appreciates, the cost of servicing debt in local currency increases, leading to debt crises. This research analyzes the increase in sovereign debt repayment costs and the potential risk of default as a consequence of the global crisis. We have conducted a comparative analysis of the Western Balkan countries, based on which we explain the impact of inflation and the strengthening of the U.S. dollar on the growth of external debt and, consequently, total public debt. We use the methodology of the World Bank and the Maastricht fiscal criteria to determine the degree of indebtedness of observed countries. We have singled out basic indicators, namely the ratio of external debt to GDP, external debt to exports and public debt to GDP. The objective of this research is to assess the impact of a strong dollar on external debt and challenges in future debt servicing. This paper emphasizes the importance of monitoring the currency structure, interest rate structure, and maturities, in addition to adherence to public debt criteria. [ABSTRACT FROM AUTHOR]

Global inflation, which slowly initiated during corona crisis and got fuelled after the Ukrainian war, is a novelty in macroeconomics: never has it happened before that inflation occurred globally, almost with no exception. Before, it generally lead to two main effects: tax revenues increased due to the tax base increase on one hand, and foreign public debt increased by the exchange rate depreciation rate (measured as the percentage increase of the price of Euro). A panel data was used, containing 12 European countries which are not part of the Eurozone & use floating exchange rate regime. Time dimension consisted of monthly data during the period from January 2006 - February 2023. Several models were built to investigate the relation between the exchange rate and the inflation. It is shown that COVID-19 crisis lowered the effect of the inflation on the exchange rates and Ukrainian crisis pressed this effect down even more: while before 2020 a 1% increase in the inflation would cause the exchange rates to depreciate, on average, by 0,86%, in the period of COVID-19 crisis this relation fell down to 0,49%. Finally, since the Ukrainian crisis, a 1 percentage point rise in the inflation level has caused the exchange rates to depreciate by only 0,28 percentage points. This analysis showed that, for the first time in history, the exchange rates are very stable even though inflation globally reached, on average, two-digit rates. This effect is significant since the inflation did not cause the foreign public debt to rise, while at the same time it increased tax revenues, helping the governments of the observed countries to repay their debt. [ABSTRACT FROM AUTHOR]

Covid-19 pandemic caught the world by surprise. On March 11th, 2020 World Health Organization (WHO) announced the global pandemic. Thus, in fact initiating the official beginning of various kinds of non-pharmaceutical interventions (NPI) and disease containment measures and reduction of mobility of population and slowing down business activities. Under these circumstances state governments had to come up with viable fiscal support packages for health sector and for the economy at large. It provided a unique opportunity to follow how different state governments coped with the consequences of suddenly imposed health and economic challenges and to compare why in some countries the depth of the crisis and speed of recovery from the crisis was different. In order to comprehend the complexity of various factors influencing the developments, this article aims to research economic and other factors defining the depth of the crisis and which of them made crisis worst and precluded economies from recovering sooner. Thus, requiring more financial and fiscal resources and increasing the outstanding public debt and debt service costs. Making potential future borrowing less attractive, decreasing the fiscal space and complicating future economic outlook even further. Author will be using regression method to compare various variables. Results prove that stringency and NPI measures were not only factors influencing the depth of the crisis. Research finding also indicate that the public debt could not be singled out as the only factor precluding the recovery and efficient use of fiscal resources. Governance, Quality of institutions, Trust in government policies are clear contributors to the efficient use of limited fiscal resources. [ABSTRACT FROM AUTHOR]

COVID-19 pandemic arrived unexpected. Full blown twin (epidemiological and economic) crisis travelled the world. Policy makers had to come up quickly with containment and mitigation measures of pandemic and fiscal and economic stimulus measure activities in order to reduce the damages created by the crisis. Governments prepared sizable fiscal stimulus packages in order to cushion the dramatic economic consequences and central banks acted pre-emptively and provided extra liquidity with different Quantitative easing programs and financial stability support measures for the financial sector. Paper discusses evolution of different crises management scenarios during several previous crises. The economic crises of such magnitude requires fast and coordinated monetary and fiscal policy actions. Just assigning massive amounts of money through various channels of economy to stimulate economic activity does not guarantee success and the immediate recovery. When monetary policy is close to or at the zero-lower bound (ZLB), the role of the fiscal policy with all its instruments becomes more important and requires much closer analysis of the use of instruments in the tool box. The problem arises with diminishing fiscal space and future cost of resources. Thus, the aim of this paper is to analyze the size, the role and the use of automatic stabilizers, semi-automatic stabilizers and various fiscal discretionary measures in the selected OECD countries during the crisis. Paper concludes that despite huge and unprecedented amounts of resources allocated through various fiscal instruments, there is only small correlation between the size of the various fiscal stimulus instruments, including automatic stabilizers, used and the speed of recovery and attainment of the output of pre-crisis levels. Since substantial fiscal space has been used up in the first two years of the COVID-19 crisis and ultimate amount of the fiscal resources is limited more thorough analysis is required to determine the factors, which shape faster economic recovery. Therefore, continuing spending huge amounts of fiscal resources and reducing the fiscal space further every year, without recognizing the main reasons of slower recovery, could be challenging in the future and would require tough fiscal and structural reforms measures. [ABSTRACT FROM AUTHOR]

Copyright of Zbornik Radova / Proceedings SKEI (1986-5945) is the property of University Vitez, Bosnia & Herzegovina and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of this paper is to analyze the public debt of Bosnia and Herzegovina and identify potential problems in public debt management that may significantly jeopardize the fulfillment of basic functions of the state in the future. The World Bank's criteria for analyzing the indebtedness of economies and the criteria of public finances for membership in the European Monetary Union are used as limits to the sustainability of public debt. In the research process, Methods of induction, deduction, analysis and synthesis, as well as comparisons and proofs are applied in the research process, all in order to support the set research hypothesis. The results show that the public debt of Bosnia and Herzegovina, according to the above-mentioned criteria, is formally within the set limits of the World Bank and the European Monetary Union. However, a problem exists in managing public borrowing, which is mainly aimed at meeting social needs and financing the administrative apparatus instead of productive investment. [ABSTRACT FROM AUTHOR]

Copyright of Challenges to the Legal System is the property of University of East Sarajevo and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

It is inevitable to write a paper on any economic issue during the time of pandemic and not assess the effect of the pandemic itself. The Covid -19 pandemic as a medical crisis has been associated with economic crisis, which analyzed historically, is the first time when medical crisis has caused economic crisis as well. A decade after the Global Financial and Economic Crisis (The Great Recession of 2007-2009) we are facing an atypical health and economic crisis that has surprised the world in many respects - both in terms of speed of expansion and scope. Undertaking different way of interventions to prevent the spread of Covid-19 has brought to many tasks that policymakers have to undertake to lessen the effect of such measures. Different countries across the globe have been faced with the challenge of balancing between the aggressiveness of the approach implemented and the economic impact or the cost of given approach. The aim of this paper is to provide a broad picture of the effect that Covid-19 has on the economy, with special emphasis on the case of Republic of North Macedonia. Specifically, the aim is to provide forecast of the macroeconomic indicators in RNM including the change that the 2020 has brought to the historical data. The methodology used is forecast of all individual macroeconomic indicators through first order autoregressive model. The results of the forecasts of the public debt data show that in 2060 is predicted to be 65%, which is higher than the optimal threshold explained in this paper. [ABSTRACT FROM AUTHOR]

The proposed article presents the economic nature and approaches to determining the financial sustainability of the state and government borrowing and the possibility of its formation. The article discusses the concept of "public debt", its structure by subjects of international credit and the foreign exchange composition of the country's foreign loans. It has been carried out the analysis of changes in economic development indicators and the indicators of the country's budget. It has been investigated the dynamics of changes in public debt and GDP in the Republic of Azerbaijan for the period 2010-2017. And also, the article examines the debt nature of the modern economy, as most countries lack their own resources to finance the current balance, to cover the state budget deficit, to carry out socio-economic reforms, and to fulfill debt obligations. [ABSTRACT FROM AUTHOR]

Globally, the volume of public debt, most of which is sovereign debt, has increased significantly and although the macroeconomic development of most states has made good progress since the consequences of the global financial crisis triggered by the United States since 2007, their share has become a major concern for global financial equilibrium. In this context, the analysis of the evolution of public debt in each country as well as in the geographic areas of strategic importance for the international economic conjuncture is an imperative for international financial analysts and institutions as well as for those who develop forecasts and propose economic-financial policies in the short term, and especially in the medium and long term. The analysis of public debt in each country, region or community / association of sovereign states is of major importance both for assessing the financial stability and, implicitly, the economic at national, global as well as presently when capital, as well as goods and services circulate with great ease between countries and continents to identify potential risk factors that may affect the macroeconomic development and social life of the communities involved. The aggravation of free movement, along with the increase in public debt, along with other factors of an economic, political and social nature, contributes to the establishment of a new world economic order characterized by a new hierarchy of world states, new economic and financial relations between countries with a developed economy and those with important natural and human resources, but whose level of macroeconomic performance is well below the level of developed ones. [ABSTRACT FROM AUTHOR]

Lately, the problem of a public debt takes place as a central macroeconomic question. The level of public debt of the Republic of Croatia, and especially the dynamics of its growth, indicates a troublesome situation in the system of public finances. The instability of the financial system and the increase in government spending have been manifested in the strengthening of the state debt borrowing increase, whose sources of funding are already largely limited due to the financial crisis. With the goal of settling incoming debts and stabilizing the system, the economy is turning to borrowing either on the domestic or foreign markets. Previous and current situation in the Republic of Croatia suggests the existence of excessive macroeconomic imbalances caused largely by the existence of excessive levels of public debt and the profound financial crisis, which ultimately reflected on the system of the public finances. Therefore, there is a need for applying special policies and strategies for managing public debt that would lead to stabilization of state indebtedness using tailored measures on the financial market. This paper deals with the impact of public debt on the economy of the Republic of Croatia, as well as the possible measures of stabilization of the system. Given the former research, the emphasis is placed on the oscillating path of public debt growth and the budget deficit, as well as the consequences of such negative movements have on the economy. The conclusion that is to be drawn is that every measure of stabilization of the system has its positive and negative effect on the economy. What consequences will prevail primarily depends on a combination of measures that will apply economic policy makers. [ABSTRACT FROM AUTHOR]

This paper states that public debt can be defined as an amount that a country owes to creditors outside themselves, but also to individuals, businesses and even other governments. The term "public debt" is used interchangeably with the term sovereign debt. The study presents a brief analysis of the evolution of public debt in Romania for the past years. The issue of public debt sustainability is an important factor in the development of policies aimed at reducing the volatility of volatile capital markets, the economic policy of Romania should be focused on the gross GDP growth. Public debt is sustainable when state authorities have the ability to repay public debt service to creditors without having to make future adjustments to budget revenues and expenditures. The public debt has a negative effect on economic growth, heavily indebted countries being exposed to the risk of capital outflows or of the rapidly deteriorating position of public finances in the context of an economic and financial crisis. Emerging economies cannot sustain the same debt level as a share of GDP, that countries with advanced economies can manage, but a much lower one, mainly because of the limited access to capital markets of the countries from the former category. [ABSTRACT FROM AUTHOR]

The objective of this chapter is to examine the long run relationships between public debt and macroeconomic stability in the period of 2002 to 2010. In this research I use Johansen's cointegration analysis and Vector Error Correction Model (VECMhenceforth) in order to test the long run effect of fiscal policy on real economic activity. Reviewing the literature, from both developed and countries in transition, I find that there is large disagreement concerning the empirical evidence for the effect of fiscal policy on real economic activity than is the case with monetary policy [1]. The empirical studies show mix and inconclusive result regarding the transmission mechanism of fiscal policy on real economic activity. In the recent years, the questions for reexamination of the suitable fiscal action on real economic activity have been increasing the interest, since the appearance of the single currency within the Euro-Zone and during the global financial crisis. [ABSTRACT FROM AUTHOR]

The problem of many European Union countries has been for a long time a high deficit of public finances and also high public debt. This situation resulted in the year 2012 to debt crisis, which need to be addressed by non-standard measures of economic policy. Although Slovakia never fell between countries with excessive public debt, however, since the formation of independent Slovak Republic in 1993 never reached a balanced state budget. The government, therefore, has developed „The stability program of the Slovak Republic for the years 2018 to 2021". The aim of this article is to evaluate implementation of the government objectives in the field of public finances development. The original intent of the government was to achieve a balanced state budget already in the year 2017. Achievement of this objectives was later delayed for a year 2020. According to Eurostat data, a general government deficit reached in Slovakia in 2016 1.7% of GDP and in 2017 1.0% of GDP. Consolidation effort has exceeded the requirements of The stability and growth pact, when it had reached 0,93% of GDP. The long-term sustainability of public finance was improved. The gross debt of the general government is reduced and currently represents 50.9% of GDP. Slovakia is located in the first penal zone (in total, there are five zones of the debt brake), as the upper limit of debt is set at the level of 50% of GDP. This means for the Ministry of Finance to justify the debt amount to the National Council and suggest measures to reduce it. Fiscal policy will have a mild impact on economic growth. From the projected fiscal impulse in the amount of 0.5% of GDP in 2018 is estimated positive impact on GDP growth of 0.3%. Government spending will be focused on government priorities, in particular in the field of capital investments and for the compensation of public employees. Mild fiscal restriction, which will be applied at the rate of 0.3% of GDP, needed to achieve the financial objectives, temporarily will slow the GDP growth in the year 2019 to about 0.2%. Fiscal policy will have a positive impact on the Slovak economy again in the year 2020 and will accelerate growth by 0.2%. [ABSTRACT FROM AUTHOR]

The global recession and the sovereign debt of European countries have triggered an intense debate over the effectiveness of fiscal policy and over the consequences of rising public debt. The relation between public debt and economic growth is a very studied and discussed debate. This paper aims to focus on some essential questions. A high public debt has a negative impact on economic growth? Does a low economic growth promote the growth of debt? What are the factors that affect the performance of these indicators and the mechanisms of transmission from one to another? The literature identifies two main lines: the Ricardian theory (or the Ricardian equivalence, under which the government debt is equivalent to the future taxes) and the conventional view (according to which the government debt stimulates aggregate demand and growth in the short term and promotes the reduction of capital and national income in the long term). What about the empirical data? The results are different in different countries and periods. What is the situation in Albania at about the last 25 years? Analyzing the macroeconomic situation and the main causes of a positive growth and a macroeconomic stability, but a high public debt, we can conclude over the expectations and the trend of the future. [ABSTRACT FROM AUTHOR]

The economic authorities' decisions not only influence the economy, but also induce interactions between economic authorities. The recent crisis has provided evidence that the fiscal policy significantly shapes the decisions of independent central banks responsible for ensuring price stability - the main objective of monetary policy. This mechanism, described by the fiscal theory of the price level, is not a new discovery, because it has been debated on since the 1990s. The fiscal theory of the price level holds that because a monetary policy alone cannot ensure the stability of prices it should be assisted by an appropriate fiscal policy. The economists' interest in monetary and fiscal interactions has been additionally stimulated by the rising levels of public debt, particularly after the recent economic crisis, large fiscal packages, and large purchases of bonds by central banks. This article analyses the importance of the fiscal theory of the price level in the context of monetary and fiscal interactions. The research methods used to this end include a review of the scientific literature, the statistical processing of the data and statistical research methods. The research findings lead to a conclusion about the fiscal policy's increasing role in policy mix. The analysis is original in that it emphasizes the importance of a proper fiscal policy and reveals its growing significance for economic processes. [ABSTRACT FROM AUTHOR]

In considering the issue of coordination between monetary policy and fiscal policy, or a lack of it, one has to take account of the so-called zero lower bound on nominal interest rates, also known as a zero-bound (ZLB) problem. The problem basically is that nominal interest rates cannot drop below zero. Many economists argue that a near-zero interest rate encourages fiscal stimulation that certainly has influence on the type of decisions made by the central bank. Some studies point to higher effectiveness of fiscal stimulation in many countries, particularly one accompanied by an accommodative monetary policy (keeping interest rates low), and to the domination of a fiscal policy during a crisis, mainly because its instruments are easier to use and stimulate the economy in less time than the monetary policy measures. This article presents an attempt to reveal interactions occurring between the monetary and fiscal authorities in a low interest rate environment. In order to achieve this aim, the following research methods are used: a review of the literature and of statistical data and statistical analysis methods. The research has shown that a financial crisis and low interest rates have effect on the type of monetary and fiscal policies adopted by economic authorities and thus on monetary and fiscal interactions. The originality of the research lies in analysing changes in monetary-fiscal interactions and factors contributing them, particularly the phenomenon of low interest rates. [ABSTRACT FROM AUTHOR]

The government deficit and public debt are always a negative economic phenomenon as a consequence of non-compliance with fiscal discipline. Chronically recurring deficits and consequently resulting debts are the current topic discussed by theoretical and economic-political authorities. The Maastricht Treaty and the Stability and Growth Pact stipulate that the government deficit should not exceed 3 % of GDP and the public debt is considered excessive if it is higher than 60 % of GDP. The growth of the government deficit and public debt is a reflection of the absence of fiscal discipline and a lack of fiscal responsibility. In 2016, both in the EU-28 and in the euro area, there was an improvement in a public sector management and debt reduction in comparison with the previous year. The EU-28's government deficit-to-GDP ratio was -1.7 % in 2016 and the government debt-to-GDP ratio stood at 83.5 %. The lowest deficits were recorded in Ireland, Croatia and Denmark. Deficits of France and Spain have exceeded -3.0 % of GDP. In 2016, the lowest debt ratios were recorded in Estonia, Luxembourg, Bulgaria, Czech Republic, Romania and Denmark. A total of sixteen EU Member States recorded a debt ratio above 60 % of GDP. Slovakia recorded the government deficit of -1.7 % of GDP in 2016 and the public debt fell below 52 % of GDP. The high government debt slows down the economic growth and decreases the efficiency of the economy. [ABSTRACT FROM AUTHOR]

The study investigates the long-term relationship and dynamic short-term impact of public debt on foreign private investment for a developing country - Nigeria during the period 1962 to 2012. The paper deploys cointegration model to examine long-term relationship between the variables. The study also examines dynamic short-term impact and causality between public debt and foreign private investment using the VECM and Granger causality test. The study further examines the response paths of foreign private investment variable due to public debts shocks using variance decomposition. The results confirm absence of longterm relationship between public debt and foreign private investment in Nigeria. The results also show that external debt has negative impact on foreign private investment in the shortterm. Finally, the results show that there is no causality between foreign private investment and public debt. The major economic implication of these findings is for debt management authorities to be conscious of growing external debts as it discourages foreign private investments into Nigeria. [ABSTRACT FROM AUTHOR]

Beginning with an analysis of the global context of substitution of monetarist for developmentalist ideology, this paper examines the crisis phenomena and capitalist reconstruction that contributed to the financial expansion of the Brazilian economy. Its central hypothesis is that this process occurred in a context of reorganization of economic relations, in which the state's role was fundamental despite the neoliberal discourse. Actually, efforts to restore the profits of classes whose incomes were reduced by welfare policies were subjacent to this discourse. In Brazil, the neoliberal ideology started to be consolidated in the mid-1990s, with the Real Plan as its landmark. In addition to inflation control, the plan aimed at attracting capital that was circulating globally in search of better investment possibilities. Reproducing the historical connection between capitalism and state, a financial expansion of the Brazilian economy also occurred under this association, in which public debt was the great engine. If public debt is not concrete in a strict economic sense, it is concrete in its capacity to impose material restrictions on large social segments. [ABSTRACT FROM AUTHOR]

The global financial crisis has influenced economic performance of the world economy and economic theory as well. The crisis has underlined the fiscal position as a fundamentally fragile element of the Euro Area members' economies and it has also proposed the question whether the growth has not been systematically fed and accelerated by increasing public indebtedness. The paper focuses on the quantification of relation between economic performance and public debt. There is an analysis of 27 EU countries and other 13 OECD economies data (1971-2010) divided into two groups - developed economies and less developed emerging markets and categorized into four blocks. Main findings of the paper are following: increasing public indebtedness as a percentage of GDP has led to lower economic performance in analysing group of 40 countries. The difference between the highest and lowest category of public debt level is almost 2 percent. It is supposed that unsufficient GDP growth might even deepen the ongoing debt crisis. [ABSTRACT FROM AUTHOR]

Life with the debt is becoming a trend, which is a natural part of the management of all economic subjects. Development trends of public debt in Eurozone after 2009 indicate that the debt crisis deepens. Even the debt of Slovakia continues to grow; while in 2009 was the public debt at 35,6 % of GDP, at the end of 2013 increased to 55,4 % of GDP. More than 97 % of the total public debt consists of central government debt; the remaining part consists of the regional and local self-government debts. Although in 2012 the regional and local self-governments have contributed to a reduction in total public debt by 0,1 %, an important part of recovery of public finances is constantly guarding the debt of all levels of public administration. The object of our research is monitoring the evolution of the public debt of Slovakia regard to its decomposition. The aim of this paper is to compare the evolution of the self-government debts on the regional level, quantify their tax revenues and capital expenditures and determine degree of dependence between the evaluated variables. For the evaluation of secondary data in time period between 2006 and 2012 we use the quantitative correlation analysis. [ABSTRACT FROM AUTHOR]

Metonymy of public finances stability, framing the European Union (EU) member states budget deficit and public debt into the limits set by the Maastricht Treaty, is closely supervised by the European Commission in the excessive deficit procedure (EDP notification). To prevent the risk of exceeding the annual targets that could means substantial penalties for Government and even exclusion from EU, at national level is compulsory the medium term fiscal and budgetary strategy. An efficient way of monitoring compliance of programme objectives that is actually laid down by law, it is represented by the implementation of automatic mechanisms for reporting granular information of budgetary indicators. In this perspective, policymakers could react on time taking into account the up-to-date reports and also the specificities of the fiscal framework, the position in the economic cycle and not finally the European regulations in the field, Government Finance Statistics (GFS) manuals, the public sector accounting standards and the national accounts rules, which are in process of update and alignment with the new statistical needs in the context of nowadays economic realities. What are the assumptions for Romania? Which is the contribution of each subsector of public administration into the final results of deficit and debt? National approach of GFS has to converge to the new standards issued by Eurostat. Estimated figures bring differences for final data and this fact shows that it is required the real-time transposition of Government sector components into the statistical format harmonized at European level, which involves financial resources, qualified personnel, time and political decisions. GFS is much more than budget deficit and public debt, it provides data on revenues, expenditures and transactions on assets and liabilities for the central, local and social security subsectors of Government, it means flows, stocks and relationships between institutional units, it shows the net wealth of the public finance and could be named radiography of fiscal policy implementation. Budget deficit and public debt is a resultant of the GFS. [ABSTRACT FROM AUTHOR]

In this research the Lithuanian public debt changes in recent years were analyzed. From 2009 the significant annual increase of foreign and overall central government debt was observed. So the related to public debt economic indicators as central government revenues, expenses, interest payments statistics and sovereign ratings were estimated. The Lithuanian public debt data was also compared to the similar statistics of other European Union countries. The analysis results indicated that Lithuanian public debt ratio to GDP and 1 inhabitant is one of the least in EU. That shows the high opportunities to be able to repay debt, but the main risks are too low macroeconomic rates of economic activity and deteriorative demographic characteristics. [ABSTRACT FROM AUTHOR]

The paper is about economic democracy in Brazil since the creation of its present currency, the real. It focuses on macroeconomic policy, which has been little studied by Brazilian sociology despite its relevance for social relations that are shaped by these policies and the inequalities they have caused. Macroeconomic policy in Brazil has been one more realm where capitalism shows itself to be antithetical to democracy. It does so by expanding the material inequality that reproduces political inequality and restricts real freedom. Another manifestation of this limited democracy is the selective insulation of economic policies, both in terms of classes that are not allowed to influence them, as well as issues that are not subject to public debate. Adding to that is the parliament's failure to deal with the macroeconomic agenda, which is thus left to control by the economic apparatus of the executive branch under disproportionate political influence from financial sector interests. The Brazilian capitalist state reveals its undemocratic side when it restricts popular participation in the main fiscal and monetary decisions that have important impacts on society as a whole. The route towards reducing the concentration of wealth and political power, that is towards some type of democratic socialism, can be opened by effective popular participation in economic decision-making. This can begin with those decisions that involve class struggles over the state budget. [ABSTRACT FROM AUTHOR]

Copyright of Proceedings of the International Scientific Conference on Practice & Research in Private & Public Sector is the property of Mykolas Romeris University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The global financial crisis emerged in the advanced economies has a brake on growth in the rest of the world in 2008 and 2009. However, some countries have fared better than others. Should we attribute these results to their best level of trade openness and financial, lack of basic weaknesses, which makes them less vulnerable to external forces, or the quality of their economic policies, which would have made the away from the global turmoil. For developing markets, the shock was mainly transmitted through financial channels, including rapid credit growth and high debts, the consequences are worse if the fixed exchange rate. The debt alone explains almost the revised growth rate of the least affected group. In this paper we try to present some factors which could explain why in some countries the balance is better, and also the impact of the recent developments on the public debt evolution. [ABSTRACT FROM AUTHOR]

In 1876 the internal weak agricultural production, corroborated by the external political tensions between Russia and Turkey, led to the first economical crisis of modern Romania. Until the Second World War several similar crises took place, most notable being the ones in 1884-1885, 1899-1900, 1904-1905, culminating with the great crisis in 1929-1932. The goal of this paper is to illustrate this succession of difficulties in the Romanian economy by means of indicators concerning commercial activities, the credit policy, the monetary policy and public finance of the country until the communist period. In addition, I aim at placing these facts in the global economical and social context. [ABSTRACT FROM AUTHOR]

The article presents a point of view regarding the public debt management, in theoretical terms, characterized by a critical analysis both economically, financially and socially. Public debt has been, is and will be a topic of real interest for every society and for many of them it may be considered a way to modernize the mentality even of the population. Public debt management is a process that is closely linked and dependent on monetary and budgetary policy and involves the involvement of all those who have a say or can influence the transformation of these issues. Public debt management requires a permanent improvement through from the perspective of reforms which take place in the state administration process. [ABSTRACT FROM AUTHOR]

The global financial crisis followed an extraordinary upward swing in the leverage cycle (Geanakoplos, 2012). When the bubble burst, the massive debt accumulation in the private sector sparked a typical debt deflation dynamics (Fisher, 1933, Minsky, 1982) that propelled the ratio of public debt-to-GDP very rapidly reflecting on one side the recession-induced decline in government revenues, and a fall in the level of prices-including those of assets; and on the other side, governments actually taking over private debt gone sour. Late empirical studies have started to focus increasingly more on the relationship between private debt and the macroeconomy (Jordá et al., 2014; Taylor, 2012; Schularick and Taylor, 2012). The key takeway from this body of work is that credit growth predicts financial crisis and that, conditional on having a recession, stronger credit growth predicts deeper recessions (Mian and Sufi, 2014; Glick and Lansing, 2010). Theoretical economic modeling has flanked the empirical research, at least up to a certain point. Building upon the modern model-based literature on collateral and leverage cycles going back to the mid-1990s pioneered by Bernanke and Gilchrist (1995) and Kiyotaki (1997), a number of recent papers in macro-finance have focused on how to reproduce ways in which excessive indebtedness in the private sector can harm the economy. None of these models, however, explores the macro-financial links between private and public balance sheets, or the dynamic interaction between fiscal and private agents during leverage cycles, which so distinctly characterized both the evolution and the recovery phases of the recent crisis. Similarly, models which do incorporate a developed public sector, and study the borrowing constrains of the government deriving the maximum government debt-GDP ratio that can be sustained without appreciable risk of default or higher inflation, do not model the role of the government as a fiscal actor or as a lender of last resort during protracted phases of financial stress. In this paper we focus explicitly on these links. We start by revisiting empirically the interaction between private and public debt in affecting economic growth. While we reaffirm the empirical result that public debt does not generally exacerbate financial recessions, we also confirm empirical existing results that there are important nonlinearities at play between public and private debt during the deleveraging phases of leverage cycles, implying that public debt impact on financial recessions changes depending on its level. We then build a parsimonious analytical model capable of stylizing this trade-off by embedding in the model links between private and public debt dynamics. The basic model structure follows Kiyotaki (1997)'s model of credit cycles that shows how small shocks to the economy might be amplified by credit restrictions, giving rise to large output fluctuations; and it embeds Iacoviello (2005)'s modifications to replicate features of borrowing constraints in the housing market within a New-Keynesian setting. Our model accounts explicitly for the two key links between private and public indebtedness that characterize debt deflation dynamics. Consequently, it is able to reproduce well two main findings of the recent empirical literature, namely that higher levels of private leverage lead to more severe recessions, with more serious consequences for public finances; and that an adverse fiscal position, either initially or caused itself by a severe financial recession, exacerbates the downturn because of the lack of fiscal space to stabilize the economy. [ABSTRACT FROM AUTHOR]

Since decades the public sector seems incapable to not incur new debt or even save money to overcome the omnipresent stressed financial situation. This grievance does not only exist on a certain level of public sector administration but is rather pervasive over several levels of public bodies including municipalities, federal states as well as entire nations. On the local government level bailouts, in form of loan repayments, are understood as measures to deliver a sustainable solution to and thus overcome the stressed financial situations of municipalities. This study presents empirical evidence for a positive connection of debt and cost inefficiency of municipalities' service provision. Furthermore interest payments have a minor impact on this connection. These findings show that repayments of municipalities' debts are not a sustainable solution to overcome the stressed financial situation on the local government level. Highly indebted municipalities are inefficient in their service provision anyway. [ABSTRACT FROM AUTHOR]