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The impact of public debt on Ghana's economic growth
Ansah, Ebenezer Yaw
ABSTRACT IN ENGLISH Using the Ordinary Least Square Technique, the research investigated the impact of public debt on economic growth in Ghana from 1980 to 2022. The Augmented Dickey Fuller (ADF) technique was also employed in the study to assess time series data stationarity. The time series plot was used in the study to assess the patterns in public debt and economic growth. To examine the impact of public debt on economic growth, the Ordinary Least Squares Method was utilized. The research showed a significant negative relationship between public debt and economic growth (GDP) across the study period. This suggests that the Ghanaian economy's sluggish growth is primarily due to the government's huge amounts of debt. Internal revenues that could have been used to propel expansion and growth are diverted to debt servicing both internally and outside. This has a rippling effect on the economy, and it is a major issue that the country should be able to look at and devise inventive methods for generating revenues while reducing excessive government expenditure. Over the years, government of Ghana has maintained a budget deficit and had to borrow to pay the salary of public sector workers. This is due to a lack of adequate fiscal policy to regulate policymakers' operations and spending habits. The country is also not coming up with new ways to generate revenue.
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The concept of "Schuldenbremse" as an instrument against indebtedness in the Federal Republic of Germany
Říhová, Dominika ; Mlsna, Petr (advisor) ; Kunštát, Miroslav (referee)
As a result of the rapidly rising debt in recent years, the Federal Republic of Germany has decided to stop this unfavourable trend. The approval and acceptance of the so-called debt brake (Schuldenbremse) into the Basic Law in 2009 was also supported by the fact that the amount of public debt significantly exceeded the defined limit by the convergence criteria. With the financial crisis and the associated debt crisis within the eurozone, it turned out that the rules set out in the Stability and Growth Pact are being handled by a few states, and therefore some states have, due to their irresponsible fiscal policy, faced serious problems which are characterized by the inability to repay their obligations. Consequently, austerity measures had to be taken and at the same time, other EU countries have been invited to adjust their public finances to contribute to the consolidation of Economic and Monetary Union. As a result, debt brakes or other measures were then embedded in national legislation to prevent further crises. The German debt brake is a set of seven constitutional laws, where the main assumption is the annual setting of balanced budgets, or balanced income and expenditure, both at federal and state level, in order to prevent new further indebtedness. It was stipulated that the state budget...
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Forecasts of the public debt for the Czech Republic
Sentivany, Daniel ; Janský, Petr (advisor) ; Seman, Vojtěch (referee)
Main goal of this thesis is to forecast future trajectory of the public debt level of the Czech Republic when taking into account ongoing fiscal reforms of the government and the after- math of the global financial crisis. A short survey of existing literature concerning fiscal austerity is presented in the first part, followed by the further motivation for the forecast- ing of the public debt level. Second part of thesis focuses mainly on the most important question, which is sustainability of the debt. We found out, that the public debt of the Czech Republic is clearly unsustainable, we also calculated so called fiscal gap to determine the amount needed to sustain it. The last third part contains numerous scenarios showing the future development of the public debt of the Czech Republic starting the year 2003, up to the year 2060. According to our results when assuming that no strict fiscal reforms will be introduced by the government in the following decades, we found that the level of the debt in the year 2060 will exceed 260% of GDP. Keywords: public debt; fiscal gap; public deficit; public budgets; public debt forecast; sustainability; debt consolidation; debt management Author's e-mail: sentivany.daniel@seznam.cz Supervisor's e-mail: jansky@fsv.cuni.cz
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Budgetary responsibility
Jarošová, Tereza ; Boháč, Radim (advisor) ; Marková, Hana (referee)
The aim of this thesis is to analyse a concept of budgetary responsibility. Taking into account current financial crisis, this topic becomes more and more important, because long term deficit financing has had negative effects on the economic situation. Thesis aims to analyse the situation from legal as well as economic prospective. The thesis also compares legal adjustments of budgetary legislation and legal facts regarding rules of budgetary responsibility in the Czech Republic and Spain. The biggest stress is put on the analysis of subsequent findings and evaluation, whether or not the establishment of rules of budgetary responsibility is neccessary, which form (constitutional or statutory) and which content would be the most beneficial. The first chapter is dedicated to definition of concept of budgetary responsibility and related notions such as state budget and public debt, including contemplation about most common causes and consequences of those phenomenons. Since legal and economic discipline is mutualy connected, I incorporated also explanation of economic theoretical approaches to a deficit financing. Second and third chapter focuse on description of legal regulation of general part of budgetary law in the Czech Republic as well as description of current bills of constitutional laws...
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The concept of "Schuldenbremse" as an instrument against indebtedness in the Federal Republic of Germany
Říhová, Dominika ; Mlsna, Petr (advisor) ; Kunštát, Miroslav (referee)
As a result of the rapidly rising debt in recent years, the Federal Republic of Germany has decided to stop this unfavourable trend. The approval and acceptance of the so-called debt brake (Schuldenbremse) into the Basic Law in 2009 was also supported by the fact that the amount of public debt significantly exceeded the defined limit by the convergence criteria. With the financial crisis and the associated debt crisis within the eurozone, it turned out that the rules set out in the Stability and Growth Pact are being handled by a few states, and therefore some states have, due to their irresponsible fiscal policy, faced serious problems which are characterized by the inability to repay their obligations. Consequently, austerity measures had to be taken and at the same time, other EU countries have been invited to adjust their public finances to contribute to the consolidation of Economic and Monetary Union. As a result, debt brakes or other measures were then embedded in national legislation to prevent further crises. The German debt brake is a set of seven constitutional laws, where the main assumption is the annual setting of balanced budgets, or balanced income and expenditure, both at federal and state level, in order to prevent new further indebtedness. It was stipulated that the state budget...
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Post-crisis development of Spain focusing on the banking system and the public sector
Nagyová-Tkáčová, Monika ; Bič, Josef (advisor) ; Antal, Jarolím (referee)
The thesis deals with the evolution of the Spanish economy, especially, after the economic crisis. It is focused on the banking system and the public sector of the country. In order to capture the theoretical basis, it processes the essence of banking, public finance theory and public debt. Subsequently, the thesis describes impacts on selected areas of the economy and the government's response to them. The main objective is to analyze the measures taken by the government and to evaluate their impact on the economic development of the landscape. At the same time, the thesis should provide recommendations for the future.
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Welfare state and indebtedness
Šnapka, Jakub ; Jiránková, Martina (advisor) ; Žamberský, Pavel (referee)
With respect to the eurozone debt crisis, the topics of public finance, chronic deficits of public budgets and sustainability of public debt came to the foreground of public debate. Due to that the discussions on legitimacy and sustainability of the welfare state in the form we know it today. In the discussions on public finance health, it is practically impossible to avoid the biggest public expenditures component, which, no doubt, the systems of social security, healthcare and other public services are. The thesis is dedicated to relationship of public indebtedness and public expenditures on welfare state of the old member states of the European Union. In three chapters, it analyzes theoretical grounds of welfare state and public indebtedness, public expenditures on welfare state and their influence on the public debt, influence of other budgetary components and ability of the state to collect taxes. The main question is whether countries which are spending relatively more on welfare state, are at the same time relatively more indebted.
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Problems and the long-term sustainability of public finance in Japan: Will Japan face sovereign default?
Jägerová, Lenka ; Stuchlíková, Zuzana (advisor) ; Neumann, Pavel (referee)
The aim of this diploma thesis is to evaluate the current situation of public finance in Japan and its long-term fiscal sustainability. The partial objective is to define the fiscal and debt sustainability of the Japan's economy and to evaluate the objectives of government reforms undertook in this area. Further, the thesis examines the link between the fiscal situation and the other problems that Japan is facing, particularly Japan's ageing population, weak domestic consumption and slow economic growth. The diploma thesis is divided into three chapters. The first chapter recalls the basic knowledge of the theory of public finance and fiscal policy. The other two chapters are empirical. It is analysed economic development of Japan after the entry into the new millennium and the fiscal reforms approved by Prime Minister Koizumi and current Prime Minister Abe. At the end of the thesis the fiscal situation and long-term sustainability is evaluated.
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Development and Debt Management in the Czech Republic
Kupka, Ondřej ; Votava, Libor (advisor) ; Vopátek, Jiří (referee)
The aim of the diploma thesis is to analyze the development of the government debt in the Czech Republic, in particular in terms of its structure, the assessment of the sustainability of the current government debt level and the assessment of the setting and operation of debt management in the Czech Republic, in comparison with the recommendations of important international institutions. Used will work primarily analytical, synthetic and comparative methods. The first chapter introduces the theoretical definition of the concepts of public debt, including its causes, impacts and forms of coverage. Subsequently, the thesis deals with the theoretical approaches in the sphere of governement debt management. The next chapters assess the development of the government debt in the Czech Republic, its structure, institutional solution and overall debt management. Finally is evaluated the sustainability of the Czech Republic's current indebtedness and realized the comparison of debt management with IMF and World Bank recommendations.
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Government bonds and stock market volatility: A Multivariate GARCH Analysis
Aliakseyeu, Aliaksei ; Horváth, Roman (advisor) ; Čech, František (referee)
The correlation between stock market returns and changes in bond market yields are of big interest among investors because this indicator helps them allocate their assets and diversify investment risk more effectively. An in- vestor should keep track of development of the economies of individual coun- tries, understand the causes of dissimilarities in the correlations among them and take these differences into account for successful international financial investment. The current author contributes to the existing researches by the modeling of stock-bond market co-movements using the updated datasets with focus on Central European countries and differences in public debt levels. The paper contains the empirical analysis of stock and bond market returns condi- tional correlations, modeled by the use of the Asymmetric Generalized Dynamic Conditional Correlation (AG-DCC) Generalized Autoregressive Conditional Het- eroskedasticity (GARCH) specification, for nine Western and Central European countries (the United Kingdom, Germany, France, Spain, Portugal, Italy, Czech Republic, Poland and Hungary) that differ both by their geographic locations and economic development. The main distinctions in the correlations are ob- served during the European sovereign debt crisis. The three types of develop- ment are...
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