Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283273 
Year of Publication: 
2023
Series/Report no.: 
wiiw Working Paper No. 230
Publisher: 
The Vienna Institute for International Economic Studies (wiiw), Vienna
Abstract: 
This paper analyses the link between discretionary fiscal policy and interest-growth differentials (r-g). Panel regressions based on a dataset for 20 advanced countries over the years 1990-2019 reveal no evidence of a systematic linear relationship between fiscal policy and r-g. However, more unfavourable r-g differentials are linked more strongly to a tighter fiscal stance when public-debt-to-GDP ratios are higher - but only in the euro area, not in advanced stand-alone countries issuing government debt in their own currency.
Subjects: 
Public debt
fiscal deficits
interest-growth differentials
fiscal policy
JEL: 
E43
E62
F33
Document Type: 
Working Paper

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