The Forgotten History of Domestic Debt

In this paper, we present the processes of public debt development in Kosovo for the period of its functioning, respectively from 2009 until 2018. There is no long history of it, but there is a dynamic constant growth. The methodology used in this paper is based on empirical study analysis, and the scientific literature we have elaborated has found that many thinkers who support public debt with arguments justify this non-fiscal instrument to finance the budget deficit as well as some others who object it. In addition to the international debt with 42% share, in 2012, the domestic debt began to function, with securities issuing at 58%. Along with the country's economic growth, we have also increased budget, and GDP growth. While every year we have an average economic growth of 3.2% to 3.5%. In 2013, compared to 2012, the budget increase is 1.96%, in 2016 compared to 2015 is 7%. In 2017 compared to 2016 we have a growth of 8.31%. In 2009, the debt-to-GDP ratio had a share of 6.12%, in 2014 it reached 10.65%, in 2017 the share of debt to GDP (GDP) was 16.63% and in Q3 of 2018 it was 16.92 %. In the countries of the region and the European Union we have different levels. Most states have a high level of debt to GDP.The study of the literature review was carried out using selected four databases containing publications. Research has been done to find out how much the public debt level is based on the specifics of the economy and fiscal policy in Kosovo. In addition to the dynamics of public finance development, public debt has also been realized.

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PART III. The Forgotten History of Domestic Debt and Default

This Time Is Different ◽

10.1515/9781400831722-009 ◽

2009 ◽

pp. 101-138

Keyword(s):

Domestic Debt ◽

History Of

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The Forgotten History of Domestic Debt

The Economic Journal ◽

10.1111/j.1468-0297.2011.02426.x ◽

2011 ◽

Vol 121 (552) ◽

pp. 319-350 ◽

Cited By ~ 89

Author(s):

Carmen M. Reinhart ◽

Kenneth S. Rogoff

Keyword(s):

Domestic Debt ◽

History Of

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Book Reviews

Journal of Economic Literature ◽

10.1257/jel.48.3.757.r3 ◽

2010 ◽

Vol 48 (3) ◽

pp. 762-766 ◽

Cited By ~ 1

Keyword(s):

Financial Crises ◽

Sovereign Default ◽

Subprime Crisis ◽

University Of Maryland ◽

Global Database ◽

Historical Comparison ◽

Domestic Debt ◽

High Inflation ◽

History Of ◽

The University

Michael J. Boskin of Stanford University reviews “This Time Is Different: Eight Centuries of Financial Folly” by Carmen M. Reinhart, Kenneth S. Rogoff,. The EconLit Abstract of the reviewed work begins “Provides a quantitative history of financial crises in their various guises. Discusses varieties of crises and their dates; debt intolerance--the genesis of serial default; a global database on financial crises with a long-term view; a digression on the theoretical underpinnings of debt crises; cycles of sovereign default on external debt; external default through history; the stylized facts of domestic debt and default; domestic debt--the missing link explaining external default and high inflation; domestic and external default--which is worse and who is senior; banking crises; default through debasement--an “old world favorite”; inflation and modern currency crashes; the U.S. subprime crisis--an international and historical comparison; the aftermath of financial crises; the international dimensions of the subprime crisis--the results of contagion or common fundamentals?; composite measures of financial turmoil; and reflections on early warnings, graduation, policy responses, and the foibles of human nature. Reinhart is Professor of Economics at the University of Maryland. Rogoff is Thomas D. Cabot Professor of Public Policy and Professor of Economics at Harvard University. Name and subject indexes.”

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