Theoretical and Applied Economics
No. 2 / 2024 (639), Summer
Crowding-out, home bias and financial stability in the aftermath of the sovereign debt crisis
National Bank of Romania, Romania
Matei KUBINSCHI
National Bank of Romania, Romania
Eugen RĂDULESCU
National Bank of Romania, Romania
Alina ZAHARIA-ROTARU
Bucharest University of Economic Studies, Romania
Abstract. Crowding-out is the phenomenon in which government spending in one sector of the economy crowds out the private sector. This paper calibrates a DSGE model for Romania and then estimates a VAR model for Romania, the Czech Republic, Poland, and Hungary. From this broad perspective, it can be ascertained that risk stemming from unsustainable debt levels is attributed to the entire macro-financial framework and not just to the fiscal sector. The analysis focuses on the period around the sovereign debt crisis, when the crowding-out effect held a pivotal position in the dynamic interplay between public sector borrowing and private investment.
Contents
Performance and risk – a changing and complex relationship for banking business
Impact of inflation and exchange rate on stock market returns in India: An ARDL approach
Westphalian order in pan-Arabism culture societies
The generational divide – A debate on technology and the decision-making process
The trend of FDI inflows and its impact on the Indian economy
Effects of exchange relative prices on macroeconomic stability in sub-Saharan African countries
Crowding-out, home bias and financial stability in the aftermath of the sovereign debt crisis
Is there convergence or divergence in per capita energy consumption in sub-Saharan African countries?
Financial transformation through digitalisation: India’s dual path of cash and cashless transaction
Nexus between global financial integration and economic growth: An ARDL approach
Integration of ESG principles: An initiative for transformation from Linear Economy to Circular Economy
European funds for sustainable transport and economic growth
What drives Tunisian economic growth: urbanization or rural development?
Impact of crypto currencies on performance of stock returns: Evidence from BRICS countries
Forecasting gold price and inflation for India and US: An analysis of ARIMA and Holt Winters models
ESG Global Score Indicator – The new sovereign rating Case study – European Union
Assessing the adoption of corporate social responsibility on developing countries: Case of Jordan
ICT and economic growth: Evidence from lower-middle income countries of South Asia
Future of cryptocurrency in India
The fintech frontier: Investigating fintech entrepreneurial intentions in the light of fintech awareness