Advanced Search
MyIDEAS: Login to save this paper or follow this series

Fiscal Sustainability When Time is on Your Side

Contents:

Author Info

  • Cronin, David

    (Central Bank and Financial Services Authority of Ireland)

  • Daniel McCoy,

    (Economic and Social Research Institute)

Abstract

With a favourable demographic profile, a budget balance currently in surplus and gross government debt under 60 per cent of GDP, Ireland would appear to be an economy with time on its side before any concerns about fiscal sustainability arise. In this paper, it is argued that favourable baseline prospects, nevertheless, provide no less a challenge for public finance management than dealing with poor baseline prospects. Two long-term policy options - reducing the debt and prefunding future pension liabilities - with a direct impact on the public finances are discussed. Both raise important issues for government and have implications for the financial and monetary system that need careful consideration. It is pointed out that member states face disincentives under EU fiscal rules to initiating public pensions prefunding schemes. The dynamics of fiscal sustainability in a fast-growing economy such as Ireland are also considered. It is argued that the EU fiscal rules may limit the attainment of the optimal growth path of an economy, particularly in economies where significant government investment may be warranted. With a wide range of growth rates and stage of development experiences in prospect across member states in future years, it is important that the fiscal rules be assessed as to whether they cater successfully for the diversity of investment requirements and public finance prospects in the EU.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.centralbank.ie/publications/documents/4RT00.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Central Bank of Ireland in its series Research Technical Papers with number 4/RT/00.

as in new window
Length: 45 pages
Date of creation: Dec 2000
Date of revision:
Handle: RePEc:cbi:wpaper:4/rt/00

Contact details of provider:
Postal: P.O. Box No. 559, Dame Street, Dublin 2
Phone: (01) 671 6666
Fax: (01) 671 6561
Email:
Web page: http://www.centralbank.ie
More information through EDIRC

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Balassone, F. & Manacelli, D., 2000. "Emu Fiscal Rules: is There a Gap?," Papers, Banca Italia - Servizio di Studi 375, Banca Italia - Servizio di Studi.
  2. Fabrizio Balassone & Daniele Franco, 2000. "Public investment, the Stability Pact and the ‘golden rule’," Fiscal Studies, Institute for Fiscal Studies, Institute for Fiscal Studies, vol. 21(2), pages 207-229, June.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. repec:esr:chaptr:jacb200010 is not listed on IDEAS
  2. Holmøy, Erling & Strøm, Birger, 2013. "Computable General Equilibrium Assessments of Fiscal Sustainability in Norway," Handbook of Computable General Equilibrium Modeling, Elsevier, Elsevier.
  3. Duffy, David & Hore, Jonathan & MacCoille, Conall & McCoy, Daniel, 2001. "Budget 2002: Macroeconomic Context and Fiscal Stance," Papers, Economic and Social Research Institute (ESRI) BP2002/1, Economic and Social Research Institute (ESRI).
  4. Bergin, Adele & Duffy, David & Eakins, John & McCoy, Daniel, 2002. "Forecasting the Public Finances and the Macroeconomic Context for Budget 2003," Papers, Economic and Social Research Institute (ESRI) BP2003/1, Economic and Social Research Institute (ESRI).
  5. Erling Holmøy, 2007. "Fiscal sustainability: Must the problem be diminished before we can see it?," Discussion Papers, Research Department of Statistics Norway 499, Research Department of Statistics Norway.
  6. Honohan, Patrick, 2001. "European and International Constraints on Irish Fiscal Policy," Papers, Economic and Social Research Institute (ESRI) BP2002/2, Economic and Social Research Institute (ESRI).
  7. repec:esr:chaptr:jacb200113 is not listed on IDEAS
  8. Kearney, Ide & McCoy, Daniel & Duffy, David & McMahon, Michael & Smyth, Diarmaid, 2000. "Assessing the Stance of Irish Fiscal Policy," Papers, Economic and Social Research Institute (ESRI) BP2001/1, Economic and Social Research Institute (ESRI).
  9. repec:esr:chaptr:jacb200210 is not listed on IDEAS
  10. repec:esr:chaptr:jacb200114 is not listed on IDEAS

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cbi:wpaper:4/rt/00. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Smith).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.