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Keyword: fiscal tightening ×Clear all

2 claims from 1 paper

1. Economics, Econometrics and Finance › Fiscal Policies and Political Economy

   Does fiscal tightening (loosening) reduce public debt?

   Abubakar · African Development Review · 2020

   The study tested how fiscal tightening and loosening affect public debt in 37 sub-Saharan African countries from 2008 to 2017, using a panel estimation method, and cautions against prolonged tightening.

   Unchecked2 claims
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   1. UncheckedIn 37 sub-Saharan African countries, running government surpluses lowered public debt, while looser fiscal policy raised it, according to the paper's estimates.“Estimation results indicated that fiscal tightening (via government surpluses) produces a depressing effect on the stock of public debt while fiscal loosening increases the stock of public debt.”
   2. UncheckedIn a panel of 37 sub-Saharan African countries, higher economic growth was associated with lower public debt.“Economic growth was also found to be effective in reducing public debt.”