This paper will examine the sustainability of the central budget and its relation to the financial stability in the case of Indonesia. The standard model of fiscal sustainability is modified to cover some financial variables. The empirical estimates are done by employing several aspects of the...

The paper proposes an operational definition of safe public debt levels and discusses various concrete approaches to calculate them. A public debt level is considered safe if it is associated with a low probability of reaching levels likely to generate significant economic costs within a given...

This study examines the fiscal sustainability of SAARC and Asian Growth-Triangle countries using Fisher and IPS tests of panel unit root and Pedroni test of panel cointegration. The tests are applied to the relationships, in terms of GDP ratios, between, i) the debt and primary surplus, and ii)...

A recent amendment in Pakistan's federal constitution allows provinces to borrow domestically and abroad. There is a concern that it may generate unsustainable debt burden, considering the country's delinquent monetary policy and a historical deficit bias. The objective of this paper is to...

The aim of this paper is to investigate the vulnerability of fiscal policy in the case of 10 Central and Eastern European countries. We use a newly introduce indicator named Cumulative Excess of the Primary Balance (CEPB) which shows the deviations of current fiscal policy from a fiscal rule...

The recent economic and financial crisis emphasized the vulnerabilities at international level and among them is the public debt. The aim of this paper is to analyse the debt Laffer curve for Romania's case to see if country suffer from debt overhang. Data on public debt for the period 2013 -...

Debt Overhang is a controversial issue in the eurozone countries and is considered as one of the factors which created the current economic crisis. How to deal with sovereign debt has been debated both at the theoretical and policy making level. This paper looks at the Greek debt and four...

For most European Union countries the government expenditure exceeds government revenue which could lead in the long run to an increase in the government debt to GDP ratio. Considering the distortions generated by the financial and economic crisis, followed by the debt crisis, both local and...