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Public debt sustainability:Methodologies and debates in European institutions

Author

Listed:
  • Cláudia Braz
  • João Amador
  • Lara Wemans
  • Maria Manuel Campos
  • Sharmin Sazedj

Abstract

Following the recent economic and financial crisis, public debt ratios increased considerably in most European Union countries, reaching historically high levels. Against this background, issues regarding the outlook for the debt ratio and the analysis of the sustainability of public finances in Member States became central in the economic policy analysis of European authorities. This Occasional Paper aims to address, in an integrated manner, the various aspects of the discussion on public debt sustainability, with a particular focus on the Portuguese case and on the constraints associated with the institutional and economic environment in the euro area. In this respect, the text approaches the concepts and methodologies used to assess sustainability, lists the existing assessment rules for euro area countries, presents its results for Portugal and refers to the main ongoing discussions on high debt levels.

Suggested Citation

  • Cláudia Braz & João Amador & Lara Wemans & Maria Manuel Campos & Sharmin Sazedj, 2016. "Public debt sustainability:Methodologies and debates in European institutions," Working Papers o201601, Banco de Portugal, Economics and Research Department.
    • Handle: RePEc:ptu:wpaper:o201601
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    File URL: https://www.bportugal.pt/sites/default/files/anexos/papers/op201601_0.pdf
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    References listed on IDEAS

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    Cited by:

    1. Maria Manuel Campos & Cristina Checherita-Westphal, 2019. "Economic consequences of high public debt and challenges ahead for the euro area," Working Papers o201904, Banco de Portugal, Economics and Research Department.
    2. repec:ptu:bdpart:e202004 is not listed on IDEAS
    3. repec:ptu:bdpart:e201802 is not listed on IDEAS

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    More about this item

    JEL classification:

    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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