Debt Behaviour of Czech and Slovak Governments: Stock-Flow Adjustment Analysis of Post-Crisis Period
| Authors | |
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| Year of publication | 2019 |
| Type | Article in Proceedings |
| Conference | Proceedings of the International Scientific Conference ECONOMIC AND SOCIAL POLICY: Economic and Social Challenges for European Economy |
| MU Faculty or unit | |
| Citation | |
| Web | http://www.narodacek.cz/wp-content/uploads/2019/12/Proceedings-of-the-International-Scientific-Conference_2019-425-440.pdf |
| Keywords | Public Debt; Fiscal Deficit; Stock-Flow Adjustment |
| Description | The public debt is one of the most monitored macroeconomic indicators. During recent history, it reaches a high ratio to the GDP in advanced countries. Several economists believe that the level of government indebtedness is attacking a threshold which is bearable for the economy. The study aims to describe the development of debt quota in the Czech Republic and Slovakia from 2007 to 2016. Based on the results, the debt quota changes it is shown that while the indebtedness of these two countries is low relative to the OECD, Slovak public finance seems to be in more danger than the Czech. Slovakia has been impotent to create primary surplus even during the period of high economic performance. The main reason why the Slovak debt to GDP was able to decline since 2012 is a good macroeconomic environment creating low-interest rates and high growth of GDP. |
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