Does the Country´s Indebtedness Have Its Limits?

Kód výsledku v 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>

Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Does the Country´s Indebtedness Have Its Limits?

Popis výsledku v původním jazyce

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).

Název v anglickém jazyce

Does the Country´s Indebtedness Have Its Limits?

Popis výsledku anglicky

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).

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50206 - Finance

Projekt

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Návaznosti

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Rok uplatnění

2020

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

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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Počet stran výsledku

13

Strana od-do

275-287

Název nakladatele

Anglo-American University

Místo vydání

Praha

Místo konání akce

online

Datum konání akce

8. 10. 2019

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

000668335000021