Balance Sheet Positions in OECD and Post-Soviet Countries Since the 1990s

Abstract

In this paper, we construct a new disaggregated net financial wealth data set for the OECD and some emerging markets countries. We find that since the beginning of 1990s, the net wealth positions of countries have developed differently. First, for a group of central and northern European countries, as well as Canada and Japan, improvements in private sector net financial wealth have resulted in improvements in net national financial wealth despite worsening public sector net wealth positions. Second, in the crisis-ridden countries of Portugal, Ireland, Iceland, Greece and Spain, private sector net wealth position improvements have not compensated for deteriorating public sector situations. Third, the net financial wealth of post-communist transition economies decreased over the sample period due to worsening private sector positions, public sector positions, or both. However, this pattern has recently changed in most post-communist states.

Keywords: sovereign debt, national wealth, aggregate private wealth

JEL Classification: D31, E21, H63