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Changes in sovereign debt dynamics in Central and Eastern Europe
Author(s) -
Cuestas Juan Carlos
Publication year - 2020
Publication title -
international journal of finance and economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 39
eISSN - 1099-1158
pISSN - 1076-9307
DOI - 10.1002/ijfe.1728
Subject(s) - economics , debt to gdp ratio , sovereign debt , debt , debt levels and flows , internal debt , sovereignty , stock (firearms) , external debt , european debt crisis , fiscal sustainability , monetary economics , debt ratio , financial crisis , gross domestic product , financial system , macroeconomics , international economics , european union , geography , political science , european integration , archaeology , politics , law
The aim of this paper is to shed some light on the degree of sustainability of fiscal debt for a group of Central and Eastern European countries. We apply a battery of time series econometrics methods to show how the financial crisis has affected the debt‐to‐gross domestic product ratio and how the ratio has behaved recently. The results give us important insights into how governments in Central and Eastern Europe have reacted to the accumulation of debt. We distinguish between two groups of countries: one group where the sovereign debt stock stabilized after the crisis, and another where debt has been accumulated more quickly in recent years. The results provide important policy lessons for the authorities responsible.