Fiscal Sustainability: The Case of Eritrea

Ayumu Yamauchi

No 2004/007, IMF Working Papers from International Monetary Fund

Abstract: The paper examines fiscal sustainability issues for the case of Eritrea but has wider implications for addressing fiscal and debt sustainability. It begins with a formal definition and explanation of analytical sustainability indicators, followed by an assessment of the causes of fiscal deficits and their impact on the usual indicators of fiscal and external debt sustainability. The paper then goes beyond the usual analytical indicators by attempting to identify how and through which channels fiscal and other economic policies have affected the behavior of endogenous variables that in one way or another influence sustainability.

Keywords: WP; private sector; physical capital; Fiscal sustainability; Endogenous response; Assets and liabilities; GDP ratio; rate of exchange rate appreciation; nominal exchange rate; debt stock; posited deficit objective; GDP decline; gap indicator; debt indicator; inflation rate; Fiscal stance; Exchange rates (search for similar items in EconPapers)
Pages: 29
Date: 2004-01-01
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Citations: View citations in EconPapers (6)

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