Empirical Evidence on Fiscal Policy Sustainability in Argentina

The IUP Journal of Monetary Economics, Vol. VII, Nos. 3 & 4, pp. 116-127, August & November 2009

Posted: 26 Aug 2009

See all articles by Maria Florencia Araoz

Maria Florencia Araoz

North University of Santo Tomas Aquino

Ana Maria Cerro

National University of Tucuman

Osvaldo Meloni

National University of Tucuman

Tatiana Soria Genta

National University of Tucuman

Date Written: August 25, 2009

Abstract

This paper contributes to the study of the economic history of Argentine crises by analyzing the fiscal sustainability for the period 1865-2002. Fiscal deficits are sustainable if the current market value of debt equals the discounted sum of expected future surpluses. It is found that Argentina never had ‘strong’ fiscal sustainability. At most, it reached weak sustainability for some sub-periods and no sustainability at all during the sub-period, 1950-1989. Interestingly, sustainability got worse as the economy went from mostly open to relatively closed state.

Suggested Citation

Florencia Araoz, Maria and Maria Cerro, Ana and Meloni, Osvaldo and Soria Genta, Tatiana, Empirical Evidence on Fiscal Policy Sustainability in Argentina (August 25, 2009). The IUP Journal of Monetary Economics, Vol. VII, Nos. 3 & 4, pp. 116-127, August & November 2009. Available at SSRN: https://ssrn.com/abstract=1461355

Maria Florencia Araoz (Contact Author)

North University of Santo Tomas Aquino ( email )

9 de Julio 142
San Miguel de Tucuman (4000)
Argentina

Ana Maria Cerro

National University of Tucuman ( email )

Avenida Independencia 1900
San Miguel de Tucuman (4000)
Argentina

Osvaldo Meloni

National University of Tucuman ( email )

Avenida Independencia 1900
San Miguel de Tucuman (4000)
San Miguel de Tucuman, Tucuman
Argentina

HOME PAGE: http://www.face.unt.edu.ar/inveco

Tatiana Soria Genta

National University of Tucuman ( email )

Avenida Independencia 1900
San Miguel de Tucuman (4000)
Argentina

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