Fiscal policy in times of fiscal stress: Or what to do when r > g

Roy Havemann and Hylton Hollander

No wp-2022-52, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: South Africa runs a primary fiscal deficit and the long-term interest rate on government borrowing, r , is greater than the long-term economic growth rate, g . Without intervention, debt will continue to rise until there is a disorderly fiscal stop. Reforms to raise growth have not materialized, leaving fiscal consolidation as the second-best solution to achieve fiscal sustainability.

Keywords: Fiscal sustainability; Fiscal consolidation; Policy coordination; Optimal policy; Fiscal policy (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-dem and nep-mac
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Citations: View citations in EconPapers (3)

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Journal Article: Fiscal policy in times of fiscal stress (or what to do when r > g) (2024)
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