Limitations of the government budget constraint: Users vs. issuers of the currency

Panoeconomicus

关键词: fiscal policy;    deficit;    sovereign risk;   

DOI  :  10.2298/PAN1101057K

来源: DOAJ

【 摘 要 】

The financial crisis and ensuing economic meltdown has led to sharp increasesin the deficits and debt levels of many advanced economies. The run-up inpublic sector indebtedness helped to restore private sector balance sheets,laying the foundation for economic recovery in these regions. But theso-called “sovereign” debt crisis in the Eurozone has undermined the fiscalresolve that has, thus far, kept truly sovereign governments from slippinginto a bona fide depression. Fearful of becoming the next Greece, governmentsthat could allow an unlimited fiscal adjustment to restore full employment,are methodically weakening their fiscal support mechanisms and settingthemselves on a path to becoming the next Japan.

【 授权许可】

Unknown