Arithmetic of influence of debt crisis on economies of visegrad group and challenges ahead

• Authors: Ptak Piotr
• Languages of publication: EN

Abstracts

EN

The global financial and economic crisis has fully revealed the risks of over- -indebted countries, whose cause was, inter alia, the maintenance of structural deficits for many years. Economies of the Visegrad Group (V4 Group) conducted even less disciplined fiscal policy than the EU. Nevertheless, the V4 Group has weathered the crisis better than the EU, even though its initial fiscal position was worse. However, in the long term, the fiscal consolidation process will be hindered due to unfavorable demographic trends and the burden on public finances imposed by scarce social security systems. In this respect, the V4 Group is going to experience even greater challenges than the EU. The purpose of this article is to show the arithmetic course and consequences of the sovereign debt crisis on economies of V4 Group as well as the challenges related among others to ageing process its population is going to face in medium and long term.

Keywords

EN

V4 Group; sovereign debt crisis; general government debt; fiscal consolidation; ageing of population

• Publisher: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
• Journal: Ekonomia XXI Wieku
• Year: 2014
• Issue: 4(4)
• Pages: 64-79

Contributors

author

Ptak Piotr

References

• Eichengreen B. von Hagen J., Wuplosz Ch., Liebman J., Feldman R., 2011, Public Debts: Nuts, Bolts and worries, Geneva Reports on the World Economy 13, International Center for Monetary and Banking Studies and Centre for Economic Policy Research, Geneva.
• Escolano J., 2010, A Practical Guide to Public Debt Dynamics, Fiscal Sustainability, and Cyclical Adjustment of Budgetary Aggregates, International Monetary Fund, Washington.
• European Commission, 2014, AMECO database of the European Commission’s Directorate General for Economic and Financial Affairs (DG ECFIN).European Commission, European Economic Forecast, Spring 2014, European Economy, no. 3.
• European Commission, 2012, The 2012 Ageing Report – Economic and budgetary projections for the 27 EU Member States (2010-2060), European Economy, no. 2.
• European Commission, 2009, The Sustainability Report, European Economy, no. 9.
• Herndon T., Ash M., Pollin R., 2013, Does High Public Debt Consistently Stifle Economic Growth? A Critic of Reinhart and Rogoff, Political Economy Research Institute, Working Paper Series, Number 322.
• http://www.visegradgroup.eu/about.
• Krugman P., 2013, The Excell Depression, “The New York Times”, 18 April.
• Mauro P., Romeu R., Binder A., Zaman A., 2013, A Modern History of Fiscal Prudence and Profligacy, International Monetary Funds, Working Paper no. 13/5.
• Reinhart C., Reinhart V., Rogoff K., April 2012, Debt Overhangs: Past and Present, NBER Working Paper Series 18015.
• Reinhart C., Rogoff K., 2010, Growth in a Time of Debt, American Economic Review, vol. 100, no. 2.
• Reinhart C., Rogoff K., October 2009, The Time is different: Eight Centuries of Financial Folly, Princeton: Princeton University Press.
• Rosati D.K., 2013, Konsolidacja fiskalna a kryzys zadłużenia w strefie euro, [in:] Kryzys finansów publicznych. Przyczyny, mechanizm, drogi wyjścia, eds. L. Oręziak, D.K. Rosati, Uczelnia Łazarskiego, Warszawa.
• Rzońca A. Varoudakis A., July/2007, The quality of fiscal adjustments in transition economies, “Bank i Kredyt”.
• Topalova P., Nyberg D., 2010, What Level of Public Debt Could India Target?, International Monetary Funds, Working Paper no. 10/7.