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dc.contributor.authorLevy-Yeyati, Eduardo
dc.contributor.authorSturzenegger, Federico
dc.date.accessioned2020-02-17T17:00:17Z
dc.date.issued2007-10
dc.identifier.citationLevy-Yeyati, Eduardo, and Federico Sturzenegger. “A Balance-Sheet Approach to Fiscal Sustainability.” CID Working Paper Series 2007.150, Harvard University, Cambridge, MA, October 2007.en_US
dc.identifier.urihttp://nrs.harvard.edu/urn-3:HUL.InstRepos:42482353*
dc.description.abstractRecent empirical research on emerging markets debt, currency crises and fiscal sustainability has placed a significant focus on the role of currency mismatches with the emphasis placed on the currency composition of explicit government liabilities. The key insight of this paper is that these liabilities, while relevant, usually represent a small share of actual government liabilities: indeed, as an indicator of fiscal solvency, they are relatively uninformative – and possibly misleading – if not matched with the remaining liabilities (promises of wage and pension payments among others) and the asset side of the government’s balance sheet: financial and real government assets as well as the present value of future tax collection. These non-debt liabilities and assets may be affected by changes in the real exchange rate in a way that dwarfs the effect on the explicit liabilities which are typically the focus of attention. With this in mind, this paper proposes a balance-sheet approach that, as illustrated by the practical applications included here, may radically alter the results from traditional sustainability evaluations – and, more generally, the perception of a country’s fiscal vulnerability.en_US
dc.language.isoen_USen_US
dc.publisherCenter for International Development at Harvard Universityen_US
dc.relation.isversionofhttps://www.hks.harvard.edu/centers/cid/publicationsen_US
dash.licenseLAA
dc.titleA Balance-Sheet Approach to Fiscal Sustainabilityen_US
dc.typeResearch Paper or Reporten_US
dc.description.versionAccepted Manuscripten_US
dc.relation.journalCID Working Paper Seriesen_US
dc.date.available2020-02-17T17:00:17Z


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