Theoretical and Applied Economics
No. 2 / 2022 (631), Summer
Fiscal consolidation and public debt in the European Union: Reevaluating the relationship
Bucharest University of Economic Studies, Romania
Alexandru VLADOI
Bucharest University of Economic Studies, Romania
Abstract. The initial shock from and response to the Global Financial Crisis (GFC) in 2008 had a profound impact on the fiscal balances and subsequently the government debt ratios of countries in the European Union (EU). This paper examines the relationship fiscal consolidation measures and the changes in debt ratios that followed. The findings highlight that the negative feedback of fiscal consolidation on economic growth in this context can translate into increases, rather than decreases in government debt ratios. As debt levels in most European Union countries are reaching record levels in the aftermath of Covid-19, these results warn of the risks of a stunted recovery if a similar approach as in the aftermath of the GFC is pursued.
Contents
International banking, crises and strategic interests
The importance of demand, uncertainty and monetary policy shocks from the euro area for the Romanian economy
Fiscal consolidation and public debt in the European Union: Reevaluating the relationship
Measuring the impact of philanthropy on small businesses: A case study of small business in Israel
Whether high frequency intraday data behave randomly: Evidence from NIFTY 50
Poverty in Romania: an analysis at regional level
The past, the present and the prospective future of efficient market hypothesis: a theoretical and empirical investigation of international stock markets
Casual nexus between economic growth, FDI and employment: An inquiry into BRICS and ASEAN
A comparative analysis of export-led and domestic demand-led growth hypotheses in BRICS economies
Reinsurance – an efficient solution of catastrophe risk transfer for the housing stock of Romania
Normative analysis of the impact of Covid-19 on prominent sectors of Indian economy by using ARCH Model
Linear and nonlinear effect of exchange rate on inflation in Pakistan
Assessing the performance of mutual funds
Model for estimating the profitability of placing asset portfolios on the capital market