The benefits of fiscal consolidation in uncharted waters

Bericht

This paper looks at fiscal sustainability and fiscal risks from a comprehensive, global perspective. It argues that the benefits of consolidation have to be re-assessed given that industrialised countries have entered uncharted waters with unsustainable public debt dynamics and enormous contingent liabilities across sectors and countries coinciding with strong, non-linear and potentially highly adverse fiscal-financial interlinkages. This suggests that there would be significant benefits from fiscal consolidation without delay and that there is a need for caution against excessive faith in fiscal engineering.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Occasional Paper ; No. 121

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Interest Rates: Determination, Term Structure, and Effects ; Central Banks and Their Policies
• Subject: Consolidation ; deficits ; financial crisis ; Fiscal sustainability ; public debt ; tail risks ; Haushaltskonsolidierung ; Öffentliche Schulden ; Haushaltsdefizit ; Finanzpolitik ; Nachhaltigkeit ; Finanzkrise ; EU-Staaten ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Rother, Philipp ; Schuknecht, Ludger ; Stark , Jürgen
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/154574
• Last update: 10.03.2025, 11:42 AM CET