Stock-flow adjustment in the evaluation of public debt dynamics in Poland
Journal Title: Optimum. Economic Studies - Year 2018, Vol 93, Issue 3
Abstract
Goal – The aim of the paper is to analyse the significance of the economic category referred to as stock-flow adjustment (SFA) for the evaluation of the level and dynamics of public debt in Poland. The category is an important part of the analyses called excessive deficit procedure (EDP) conducted by The European Commission. It is also a major contributor to the growth of public debt. It is also related to political activities which fall into the category of creative accounting. Stock-flow adjustment is, therefore, a threat to the stability of public debt. In spite of all this, SFA is not taken into account in Polish documents related to debt management. Research methodology – The analysis performed by the Author is based on the desk research method. It is mostly a qualitative analysis, relying on the literature and both strategic and operational documents of the European Commission and the Polish Ministry of Finance. Stock-flow adjustment is widely regarded in literature as an expression of the hidden part of public debt dynamics. This paper offers an evaluation of SFA’s influence on public debt and its different degrees across both developing and developed countries. Moreover, the documents of the European Commission and the Polish Ministry of Finances are analysed from the point of view of SFA. Score – The analysis undertaken in the paper reveals that stock-flow adjustment has a strong impact on the occurrence of the so-called debt pikes, i.e. sharp increases in public debt. Many authors’ conclusions confirm that SFA considerably affects the level of debt. They also associate it with the restrictiveness of fiscal rules and creative accounting. Thus, SFA is an important element of public debt sustainability. SFA is included in European Commission analyses, but fails to be recognized by Polish documents. It is strongly recommended that SFA is taken into consideration in public debt management in Poland.
Authors and Affiliations
Paweł Piątkowski
Keywords
Related Articles
- EP ID EP500238
- DOI 10.15290/oes.2018.03.93.11
- Views 76
- Downloads 0
Francuski plan ożywienia gospodarki (2008-2010) – wizje i rzeczywistość
Cel – Celem artykułu jest przedstawienie francuskiego planu ożywienia gospodarki, który był odpowiedzią na światowy kryzys finansowy z lat 2007-2008. Opis – W tekście omówiono założenia plan de relance, jego realizację...
Reakcje przedsiębiorstw na obciążenia podatkowe (na przykładzie podatku od towarów i usług)
W artykule przedstawiono autorskie (własne) ujęcie reakcji przedsiębiorstw na obciążenia podatkowe. Założono, że z punktu widzenia przedsiębiorstwa najbardziej pożądane jest stosowanie strategii podatkowej. Zaproponowano...
Financial management of State Forests National Forest Holding in relation to challenges of sustainable development of forestry
Goal is to systemise knowledge about the rules and basic elements of financial management of the State Forests as an entity responsible for the sustainable development of forestry in Poland. Research methodology used in...
Zastosowanie skierowanych liczb rozmytych w modelu równowagi rynkowej
W pracy rozważono liniowy model równowagi rynkowej, w którym parametry są liczbami rzeczywistymi. W modelu tym zakłada się, że popyt i podaż zależą tylko od ceny, a czynniki pozacenowe są niezmienne. Jednak, by uzyskać b...
System gospodarczy Polski w latach 1918-2018
Cel – Celem niniejszego artykułu jest przedstawienie ewolucji systemu gospodarczego Polski na przestrzeni ostatnich stu lat, od odzyskania niepodległości w 1918 r. do dnia dzisiejszego, a także próba uchwycenia jego spec...