Debt Sustainability and Fiscal Policy Rules in the European Union
Hyperion Economic Journal, 2017, vol. 5, issue 4, 41-47
The sustainability of fiscal policy represents a subject which was studied extensively and the general conclusion of these studies is that fiscal policy is sustainable provided the intertemporal budget constraint is satisfied. The future expected discounted primary surpluses should exceed the value of public debt in order for public debt to be sustainable. The ability of governments to repay the debt will depend on the capacity to achieve future primary surpluses and on the stock of past debts. Fiscal policies are thus dependent on the intertemporal budget constraint, in case this condition is not fulfilled, then governments will have to change fiscal policies.
Keywords: fiscal policy; intertemporal budget constraint; primary surplus; public debt; fiscal rules (search for similar items in EconPapers)
JEL-codes: H60 H63 E62 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hyp:journl:v:5:y:2017:i:4:p:41-47
Access Statistics for this article
Hyperion Economic Journal is currently edited by Iulian Panait
More articles in Hyperion Economic Journal from Faculty of Economic Sciences, Hyperion University of Bucharest, Romania Hyperion University, Faculty of Economic Sciences, Calea Calarasilor no. 169, district 3, Bucharest, 030615, Romania. Contact information at EDIRC.
Bibliographic data for series maintained by Iulian Panait ().