Fiscal Adjustment in EU Countries: A Balance Sheet Approach

By G. Milesi-Ferretti, K. Moriyama. Social Science Research Network, 2004

113 citations recorded by the source corpus.

Several European Union countries have recently implemented or are envisaging fiscal operations which improve budgetary figures but have no structural impact on government finances. We evaluate some of these measures using a balance sheet approach. In particular, we examine the degree to which reductions in government debt in EU countries has been accompanied by a decumulation of government assets. In the run-up to Maastricht we find a strong correlation between changes in government liabilities and government assets, and larger declines in government assets in countries starting from higher public debt levels.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/4f07e1362776c2eab2618b816ab71d95f9055966

Citations in the corpus

• Fool the Markets? Creative Accounting, Fiscal Transparency and Sovereign Risk Premia (2006, unknown): “Similarly, Milesi-Ferretti and Moriyama (2004) find that during the period leading up to 1997 governments reduced the public debt ratio by decumulating government assets in order to qualify for EU membership. r 2008 The Authors Journal compilation r 2008 Scottish Economic Society Another line of…”