A Practical Guide to Public Debt Dynamics, Fiscal Sustainability, and Cyclical Adjustment of Budgetary Aggregates

Julio Escolano

No 2010/002, IMF Technical Notes and Manuals from International Monetary Fund

Abstract: This paper presents a practical guide to public debt dynamics, fiscal sustainability, and cyclical adjustment of budgetary aggregates. The paper discusses fiscal formulas, which may be of practical use in fiscal analysis. The paper derives, respectively, the formulas for debt dynamics, and cyclical and inflation adjustment of budgetary aggregates. It discusses other relationships for special applications, and some practical implications and usage. The formulas related to debt dynamics are based on the assumption that changes in liabilities are the result of above-the-line budgetary operations.

Keywords: TNM; debt ratio; Public debt dynamics; Government budget constraint; Ponzi game; Cyclically adjusted balance; target debt ratio; debt ratio decline; budget balance; interest rate; potential GDP; debt path; balance ratio; Fiscal stance; Interest payments; Budget planning and preparation; cyclical adjustment (search for similar items in EconPapers)
Pages: 26
Date: 2010-01-27
References: Add references at CitEc
Citations: View citations in EconPapers (113)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=23498 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imftnm:2010/002

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Technical Notes and Manuals from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi (amodi@imf.org).