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Government Deficit Sustainability, And Monetary Versus Fiscal Dominance: The Case Of Spain, 1850-2000

Listed author(s):
  • Oscar Bajo-Rubio

    (Universidad de Castilla-La Mancha)

  • Carmen Díaz-Roldán

    (Universidad de Castilla-La Mancha)

  • Vicente Esteve

    (Universidad de Valencia, Universidad de La Laguna and Universidad de Alcalá)

In this paper, we provide a test of the sustainability of the Spanish government deficit over the period 1850-2000, emphasizing the role played by monetary and fiscaldominance in order to get fiscal solvency. Since the condition of fiscal solvency was satisfied, government deficit would have been sustainable along the sample period. In addition, the whole period can be characterized as one of fiscal dominance.

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File URL: ftp://147.156.210.157/RePEc/pdf/eec_1408.pdf
File Function: First version, 2014
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Paper provided by Department of Applied Economics II, Universidad de Valencia in its series Working Papers with number 1408.

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Date of creation: Aug 2014
Handle: RePEc:eec:wpaper:1408
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