A Balance-Sheet Approach to Fiscal Sustainability

Recent empirical research on emerging markets debt, currency crises and fiscal sustainability has placed a significant focus on the role of currency mismatches with the emphasis placed on the currency composition of explicit government liabilities . The key insight of this paper is that these liabil...

Descripción completa

Guardado en:
Detalles Bibliográficos
Autores principales: Levy Yeyati, Eduardo, Sturzenegger, Federico
Formato: Documento de trabajo publishedVersion
Lenguaje:Inglés
Publicado: Universidad Torcuato Di Tella 2024
Materias:
Macroeconomics
Macroeconomía
Política Fiscal
Fiscal policy
Sovereign Debt
Deuda Pública
Fiscal sustainability
Currency mismatches
Acceso en línea:https://repositorio.utdt.edu/handle/20.500.13098/13083
Aporte de:
Repositorio Digital Universidad Torcuato Di Tella de Universidad Torcuato Di Tella
id I57-R163-20.500.13098-13083
record_format dspace
spelling I57-R163-20.500.13098-130832024-10-03T07:00:18Z A Balance-Sheet Approach to Fiscal Sustainability Levy Yeyati, Eduardo Sturzenegger, Federico Macroeconomics Macroeconomía Política Fiscal Fiscal policy Sovereign Debt Deuda Pública Fiscal sustainability Currency mismatches Recent empirical research on emerging markets debt, currency crises and fiscal sustainability has placed a significant focus on the role of currency mismatches with the emphasis placed on the currency composition of explicit government liabilities . The key insight of this paper is that these liabilities, while relevant, usually represent a small share of actual government liabilities: indeed, as an indicator of fiscal solvency, they are relatively uninformative –and possibly misleading– if not matched with the remaining liabilities (promises of wage and pension payments among others) and the asset side of the government’s balance sheet: financial and real government assets as well as the present value of future tax collection. These non-debt liabilities and assets may be affected by changes in the real exchange rate in a way that dwarfs the effect on the explicit liabilities which are typically the focus of attention. With this in mind, this paper contributes proposes a balance-sheet approach that, as illustrated by the practical applications included here, may radically alter the results from traditional sustainability evaluations –and, more generally, the perception of a country’s fiscal vulnerability. 2024-10-02T19:58:42Z 2024-10-02T19:58:42Z 2021-03 info:eu-repo/semantics/workingPaper info:eu-repo/semantics/publishedVersion https://repositorio.utdt.edu/handle/20.500.13098/13083 eng Documento de Trabajo. Universidad Torcuato Di Tella. Escuela de Gobierno info:eu-repo/semantics/openAccess https://creativecommons.org/licenses/by-sa/2.5/ar/ 37 p. application/pdf application/pdf Universidad Torcuato Di Tella Escuela de Gobierno
institution Universidad Torcuato Di Tella
institution_str I-57
repository_str R-163
collection Repositorio Digital Universidad Torcuato Di Tella
language Inglés
orig_language_str_mv eng
topic Macroeconomics
Macroeconomía
Política Fiscal
Fiscal policy
Sovereign Debt
Deuda Pública
Fiscal sustainability
Currency mismatches
spellingShingle Macroeconomics
Macroeconomía
Política Fiscal
Fiscal policy
Sovereign Debt
Deuda Pública
Fiscal sustainability
Currency mismatches
Levy Yeyati, Eduardo
Sturzenegger, Federico
A Balance-Sheet Approach to Fiscal Sustainability
topic_facet Macroeconomics
Macroeconomía
Política Fiscal
Fiscal policy
Sovereign Debt
Deuda Pública
Fiscal sustainability
Currency mismatches
description Recent empirical research on emerging markets debt, currency crises and fiscal sustainability has placed a significant focus on the role of currency mismatches with the emphasis placed on the currency composition of explicit government liabilities . The key insight of this paper is that these liabilities, while relevant, usually represent a small share of actual government liabilities: indeed, as an indicator of fiscal solvency, they are relatively uninformative –and possibly misleading– if not matched with the remaining liabilities (promises of wage and pension payments among others) and the asset side of the government’s balance sheet: financial and real government assets as well as the present value of future tax collection. These non-debt liabilities and assets may be affected by changes in the real exchange rate in a way that dwarfs the effect on the explicit liabilities which are typically the focus of attention. With this in mind, this paper contributes proposes a balance-sheet approach that, as illustrated by the practical applications included here, may radically alter the results from traditional sustainability evaluations –and, more generally, the perception of a country’s fiscal vulnerability.
format Documento de trabajo
publishedVersion
author Levy Yeyati, Eduardo
Sturzenegger, Federico
author_facet Levy Yeyati, Eduardo
Sturzenegger, Federico
author_sort Levy Yeyati, Eduardo
title A Balance-Sheet Approach to Fiscal Sustainability
title_short A Balance-Sheet Approach to Fiscal Sustainability
title_full A Balance-Sheet Approach to Fiscal Sustainability
title_fullStr A Balance-Sheet Approach to Fiscal Sustainability
title_full_unstemmed A Balance-Sheet Approach to Fiscal Sustainability
title_sort balance-sheet approach to fiscal sustainability
publisher Universidad Torcuato Di Tella
publishDate 2024
url https://repositorio.utdt.edu/handle/20.500.13098/13083
work_keys_str_mv AT levyyeyatieduardo abalancesheetapproachtofiscalsustainability
AT sturzeneggerfederico abalancesheetapproachtofiscalsustainability
AT levyyeyatieduardo balancesheetapproachtofiscalsustainability
AT sturzeneggerfederico balancesheetapproachtofiscalsustainability
_version_ 1823894513492426752

Ejemplares similares