Fiscal Adjustment in EU Countries : A Balance Sheet Approach

Author/Editor:

Kenji Moriyama ; Gian M Milesi-Ferretti

Publication Date:

August 1, 2004

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Several European Union countries have recently implemented or are envisaging fiscal that operations improve budgetary figures but have no structural impact on government finances. This paper evaluates some of these measures using a balance sheet approach. In particular, it examines the degree to which reductions in government debt in EU countries has been accompanied by a decumulation of government assets. In the run-up to Maastricht (1997) it finds a strong correlation between changes in government liabilities and government assets, and larger declines in government assets in countries starting from higher public debt levels.

Series:

Working Paper No. 04/143

Subject:

English

Publication Date:

August 1, 2004

ISBN/ISSN:

9781451856378/1018-5941

Stock No:

WPIEA1432004

Format:

Paper

Pages:

25

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