Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154574
Authors: 
Rother, Philipp
Schuknecht, Ludger
Stark , Jürgen
Year of Publication: 
2010
Series/Report no.: 
ECB Occasional Paper 121
Abstract: 
This paper looks at fiscal sustainability and fiscal risks from a comprehensive, global perspective. It argues that the benefits of consolidation have to be re-assessed given that industrialised countries have entered uncharted waters with unsustainable public debt dynamics and enormous contingent liabilities across sectors and countries coinciding with strong, non-linear and potentially highly adverse fiscal-financial interlinkages. This suggests that there would be significant benefits from fiscal consolidation without delay and that there is a need for caution against excessive faith in fiscal engineering.
Subjects: 
Consolidation
deficits
financial crisis
Fiscal sustainability
public debt
tail risks
JEL: 
C32
E3
E43
E58
Document Type: 
Research Report

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