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The debt to wealth ratio vs the debt to GDP ratio as an indicator of financial stability

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  • Valeria De Bonis

    (Università Sapienza di Roma - Dipartimento di Studi Giuridici ed Economici)

Abstract

The application of the SGP fiscal criteria has evolved over time. This paper reviews the changing role of the debt benchmark in the light of Carlo Casarosa's analysis of the economic meaning of the public debt to GDP ratio.

Suggested Citation

  • Valeria De Bonis, 2023. "The debt to wealth ratio vs the debt to GDP ratio as an indicator of financial stability," Public Finance Research Papers 57, Istituto di Economia e Finanza, DSGE, Sapienza University of Rome.
    • Handle: RePEc:gfe:pfrp00:00057
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    File URL: https://www.dsge.uniroma1.it/sites/default/files/pubblicazioni/economia/e-pfrp57.pdf
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    References listed on IDEAS

    as
    1. Bruce, Neil & Turnovsky, Stephen J, 1999. "Budget Balance, Welfare, and the Growth Rate: "Dynamic Scoring" of the Long-Run Government Budget," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 31(2), pages 162-186, May.
    2. Thomas Piketty & Gabriel Zucman, 2014. "Capital is Back: Wealth-Income Ratios in Rich Countries 1700–2010," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(3), pages 1255-1310.
    3. Ross Milbourne, 1997. "Growth, Capital Accumulation and Foreign Debt," Economica, London School of Economics and Political Science, vol. 64(253), pages 1-13, February.
    4. Charles Wyplosz, 2011. "Debt Sustainability Assessment: Mission Impossible," Review of Economics and Institutions, Università di Perugia, vol. 2(3).
    5. repec:hal:pseose:halshs-01109372 is not listed on IDEAS
    6. Janice Gaffney & Colin Rogers, 1999. "Some Properties of a Small Open Economy Version of the Solow-Swan Growth Model," School of Economics and Public Policy Working Papers 1999-09, University of Adelaide, School of Economics and Public Policy.
    7. Olivier Blanchard & Alvaro Leandro & Jeromin Zettelmeyer, 2021. "Redesigning EU fiscal rules: from rules to standards," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 36(106), pages 195-236.
    8. Fabrizio Balassone & Daniele Franco & Stefania Zotteri, 2007. "The Reliability of EMU FIscal Indicators: Risks and Safeguards," Temi di discussione (Economic working papers) 633, Bank of Italy, Economic Research and International Relations Area.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    SGP fiscal criteria; debt to GDP ratio; wealth to GDP ratio; EU governance; Italy.;
    All these keywords.

    JEL classification:

    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions

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