An International Empirical Study on the Fiscal Surplus from the Perspective of Sectoral BalancesQuestioning the Current Fiscal Rules

  1. Eduardo Garzón Espinosa 1
  2. Esteban Cruz Hidalgo 2
  3. Bibiana Medialdea García 1
  4. Carlos Sánchez Mato 1
  1. 1 Universidad Complutense de Madrid
    info

    Universidad Complutense de Madrid

    Madrid, España

    ROR 02p0gd045

  2. 2 Universidad de Extremadura
    info

    Universidad de Extremadura

    Badajoz, España

    ROR https://ror.org/0174shg90

Revista:
Revista de economía mundial

ISSN: 1576-0162

Año de publicación: 2023

Número: 63

Páginas: 67-96

Tipo: Artículo

DOI: 10.33776/REM.VI63.7094 DIALNET GOOGLE SCHOLAR lock_openArias Montano editor

Otras publicaciones en: Revista de economía mundial

Resumen

The simultaneous recording of public surplus with current account deficit in a national economy could be related to strong private leverage that usually ends in financial crisis, what would make the public surplus unsustainable. The objective of this work is to check the extent to which this claim is bolstered by empirical support. The results reveal that, in effect, the concurrence of public surpluses and current account deficits is associated with private leverage processes and financial crises. These outcomes question the design of the current fiscal rules since they don’t pay attention to the current account balance.

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