The European Public Debt Refinancing Program - Why the ECB Quantitative Easing Should Envisage Euro-Zone Government Bonds

2014 ◽  
Author(s):  
Marcello Minenna
Keyword(s):  
Public Debt ◽  
Quantitative Easing ◽  
Government Bonds ◽  
Euro Zone ◽  
European Public

scholarly journals Budget and Tax Policy and the Public Debt Market in the First Half of 2020

Federalism ◽  
2020 ◽  
pp. 169-187
Author(s):  
I. S. Bukina
Keyword(s):  
Public Debt ◽  
Quantitative Easing ◽  
Monetary Policies ◽  
Government Bonds ◽  
The Public ◽  
Debt Burden ◽  
Russian Economy ◽  
Debt Market ◽  
Coronavirus Infection ◽  
Restrictive Measures

The pandemic of a new coronavirus infection for the Russian economy was a double shock: against the background of the spread of COVID-19, oil prices fell sharply. This was a serious shock for the economy and budget revenues. However, it was the budget expenditures that played a major role in supporting output. In addition, monetary policy was expansionary. Thus, in the first half of 2020, a combination of stimulating fiscal and expansionary monetary policies was observed. This combination increased the demand for government bonds. During the periods of the next decrease in the key rate of the Central Bank, an increase in the yield of OFZ was observed. Despite the fact that the level of Russia’s debt burden is low, there are specific risks that limit the possibilities for increasing debt. These include possible sanctions, a weakening of the ruble, falling incomes of the households and a high probability of an increase in bankruptcies of those organizations that will not be able to survive the consequences of the introduction of restrictive measures. Given these risks, it is necessary to consider mechanisms to support the economy using debt instruments and quantitative easing policies.

PROSPECTS FOR THE DEVELOPMENT OF THE OVDP MARKET IN UKRAINE AS AN ALTERNATIVES TO EXTERNAL BORROWING

2017 ◽  
Author(s):  
Oleksandra Vіvchar ◽  
◽  
Solomiia Papirnyk ◽  
Keyword(s):  
Public Debt ◽  
Bond Market ◽  
Debt Management ◽  
Securities Market ◽  
Government Bond ◽  
Government Bonds ◽  
The Public ◽  
Long Run ◽  
External Borrowing ◽  
Domestic Economies

The article provides an applied analysis of Ukraine's public debt, in particular in the context of the feasibility of optimizing its structure. The comparison of internal and external borrowings is made, the main shortcomings and advantages of each of these ways of mobilization of financial resources are revealed. Given the hypothesis of the need to increase domestic public debt compared to external, special attention is paid to the study of the main financial instrument through which the state raises funds in the domestic market - domestic government bonds of Ukraine. The dynamics of data volumes of debt securities with an emphasis on crisis periods in both the world and domestic economies was also studied. In addition, the structure of domestic government bonds of Ukraine in circulation was considered on the basis of the owner. This made it possible to identify the main players in the domestic government bond market, as well as the motives that motivate them to increase their own portfolio of domestic government bonds of Ukraine. In order to determine the prospects for increasing the volume of output of these instruments of the Ukrainian stock market, their comparative analysis with alternative types of investments. Particular attention in this aspect is paid to the comparison of IGLBs with deposits, which today are considered the simplest, clearest and most proven way to invest money for individuals. An important role in this study is given to the analysis of key problems of the domestic government bond market, which have haunted the domestic economy since the independence of Ukraine. The main successes achieved in recent years by the Public Debt Management Office of Ukraine with the support of representatives of international financial organizations in terms of optimizing the domestic securities market are presented. The main steps that need to be taken for further real transformation of the debt securities market in Ukraine and which in the long run will reduce Ukraine's financial dependence on external creditors, in particular their requirements in the political and economic arena, are also outlined.

STUDY OF THE DYNAMICS AND STRUCTURE OF THE STATE DEBT OF UKRAINE, METHODS OF ITS OPTIMIZATION

2018 ◽  
Author(s):  
Stepan Paranchuk ◽  
◽  
Roksolana Skip ◽  
Keyword(s):  
Public Debt ◽  
Financial Stability ◽  
The State ◽  
State Budget ◽  
Government Bonds ◽  
Advantages And Disadvantages ◽  
Safe Level ◽  
Domestic Debt ◽  
The Government ◽  
External Borrowing

One of the leading problems of Ukraine's economy at the present stage of its development is the issue of public debt, the constant increase in its size, irrational structure, which creates the preconditions for the dollarization of the national economy. Public debt is an important element of a market economy. As of today, there is no state that would not use borrowed funds. Borrowing by the state is due to the lack of own financial resources needed to finance the state budget and state functions. If used effectively, borrowed funds can be a positive factor in economic growth, but otherwise the increase in debt leads to economic dependence, deteriorating financial stability, as well as the financial crisis. The article reveals the issue of public debt of Ukraine, analyzes the dynamics of its value from 2009 to 2021 and identifies the reasons for the growth and / or reduction of this indicator. A study of the structure of debt obligations on the basis of the creditor, analyzed the advantages and disadvantages of internal and external borrowing. The article also provides a detailed description of the structure of internal and external creditors, the main tools used by the Government of Ukraine to attract domestic loans. Particular attention is paid to the analysis of domestic debt in terms of the structure of domestic government bonds. The ratio of public debt to gross domestic product and its comparison with the marginal and safe level are considered. A forecast was made for the amount of public debt for the future.

Long-Run Effects of Debt versus Tax Financing

1975 ◽  
Vol 3 (4) ◽  
pp. 346-360
Author(s):  
Anibal Cavaco Silva
Keyword(s):  
Public Debt ◽  
Debt Service ◽  
Government Bonds ◽  
Net Worth ◽  
Free Distribution ◽  
Long Run ◽  
Tax Reduction

This paper reexamines Modigliani's remits of the long effects of an increment in public debt to finance a tax reduction or arising from a free distribution of government bonds Firstly, the effect of debt service on human and nonhuman wealth is introduced into the analysis. Secondly, it is shown that for the purpose of long-run debt analysis it is not legitimate to treat the cumulated change in saving as an equal change in net worth. This leads to a major correction of Modigliani's results.

scholarly journals Problem długu publicznego w państwach Unii Gospodarczej i Walutowej

2012 ◽  
pp. 11-46
Author(s):  
Izabela Zawiślińska
Keyword(s):  
Public Debt ◽  
Union Member ◽  
Foreign Debt ◽  
External Debt ◽  
Global Dimension ◽  
Member States ◽  
Euro Zone ◽  
The Past ◽  
The Future ◽  
The Common

Public debt and the increasing indebtedness of states is not a new phenomenon even in the context of bankruptcy of state. In the past we have already experienced internal and external state insolvency. What causes today’s increase in preoccupation with external bankruptcy, except for global dimension of debt, is a change in its structure. An increasing number of states uses foreign debt to finance budget and trade imbalances. This tendency is observed among developing as well as developed states, including Economic and Monetary Union member states. The increase in external debt is in large part caused by privet debt which in certain circumstances is transferred to state. The level of total external debt of many Euro Zone member states in relation to GDP is much higher than the level of public debt. These are the reasons that justify the fear for the future of Euro Zone after bankruptcy of some of the member states. What increases the level of fear is the fact that the actions undertaken by European Union and EMU do not cause expected results and therefore cannot be judged positively. Paradoxically, some of them have only political and PR dimensions. Politicians may brag about their resolve to defend the once adopted solutions and markets may remain in their illusion that the present situation is only temporary. How long will it last? Last actions seem to be just a game designed to gain some more time to prepare different solutions such as fundamental and subjective restructuring of Euro Zone and – who knows? – maybe even of the European integration as such. The words of European Central Bank president Mario Draghi (August 2, 2012) stressing the fact that there’s no turning back from the Euro and that he is going to defend the common currency need to be understood in that context. The belief in the solidarity of states and optimistic outlook for the future should not result in such dramatic and desperate words.

scholarly journals The Economy of the Border Municipalities of Finland in the Post-Crisis Years

2021 ◽  
Vol 21 (3) ◽  
pp. 119-127
Author(s):  
Roman Plyusnin ◽  
Keyword(s):  
Economic Growth ◽  
Twentieth Century ◽  
Public Debt ◽  
Service Sector ◽  
Geographical Location ◽  
Economic Situation ◽  
Negative Consequences ◽  
Official Statistics ◽  
Euro Zone ◽  
The Eu

The 2008–2009 crisis and the subsequent euro zone crisis dealt a serious blow to the Finnish economy. 2009 was marked by a significant reduction in the country's GDP, an increase in unemployment, and an increase in public debt. In the following years, Finland did not experience stable economic growth, and in 2014, mutual sanctions between Russia and the EU made their contribution. It was only in 2016 that the country began its systematic return to its pre-crisis state. Finnish municipalities bordering Russia since the 1990’s. the twentieth century is the least economically developed part of the country, which at the same time is most closely connected with our country due to its geographical location. In this regard, in this article, the author considered the economic situation of these municipalities on the basis of available official statistics. It was found that the dynamics of the considered indicators most often correlate with what was happening in the country as a whole. In 2014–2015, no special negative consequences from counter-sanctions on the part of our country were revealed. The exception was the indicators related to the service sector of border municipalities, which in 2014–2015 were noticeably worse than the average for Finland.

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