Does the Country´s Indebtedness Have Its Limits?

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F25940082%3A_____%2F20%3AN0000020" target="_blank" >RIV/25940082:_____/20:N0000020 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Does the Country´s Indebtedness Have Its Limits?
Original language description
Government debt has significantly exceeded GDP in some cases for several years, while limits set by the Maastricht criteria in the Eurozone seem to only be treated as theoretical numbers. Further, massive public debt created by Japan in recent decades and debt created by the credit crisis in the USA have both exceeded forecasts. Even more so, consequences of government fiscal policy measures taken during the COVID 19 crisis have led to speculation about impact. Numbers concerning public debt lead to the conclusion that government debt has no limits. By analysing key indicators used to measure government debt for twenty-four countries, this paper proved that there are no general ratios applicable to all countries at any given time. The public indebtedness “one size fits all” approach not only does not work but may precipitate dangerous consequences. Each country has its individual culture, economy and political system which can have positive or negative consequences regarding high indebtedness. Governments must be free of bureaucratic guidelines and should be able to follow general economic principles based on cost-benefit analysis to look to marginal benefits when considering increases in deficits (and as a consequence total debt).
Czech name
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Czech description
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Publication year
2020
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
8th International Scientific Conference on IFRS - Global Rules and Local Use - Beyond the Numbers
ISBN
978-80-907602-4-0
ISSN
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e-ISSN
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Number of pages
13
Pages from-to
275-287
Publisher name
Anglo-American University
Place of publication
Praha
Event location
online
Event date
Oct 8, 2019
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
000668335000021

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