Financial Crises, Macroeconomic Shocks, and the Government Balance Sheet: A Panel Analysis
IMF Working Papers, April 24, 2018
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- Financial Crises, Macroeconomic Shocks, and the Government Balance Sheet: A Panel Analysis
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Bibliographic details
- Authors: Matteo Ruzzante
- Published: April 24, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484352762.001
Research scope and methodology
- Objective: Investigate the impact of recent financial crises and macroeconomic shocks on government balance sheets, decomposing separate effects on financial assets and liabilities.
- Data: Quarterly Government Finance Statistics (GFS) data.
- Sample: A panel of 27 countries.
- Period covered: 1999Q1-2017Q1.
- Methods: Fixed effects and panel VAR techniques.
- Publication details:
- Pages: 55
- Volume: 2018
- Issue: 093
- Series: Working Paper No. 2018/093
- DOI: https://doi.org/10.5089/9781484352762.001
- Stock No: WPIEA2018093
- ISBN: 9781484352762
- ISSN: 1018-5941
Key findings on crises and balance sheets
- Financial crises effects:
- Financial crises are shown to deteriorate the net financial worth of governments.
- No significant impact is found on government financial assets, suggesting they are not being used as fiscal buffers in bad times.
- Countries that suffered both financial and banking crises experienced an “artificial” increase of their asset position through bank bailouts.
- Macroeconomic shocks:
- Government balance sheet items are countercyclical.
- Important asymmetries are found in the dynamics of government balance sheet items in response to macroeconomic shocks.
Subjects and keywords emphasized
- Subject areas: Financial crises, Financial statements, Fiscal policy, Government liabilities, Public debt, Public financial management (PFM).
- Keywords: Banking Crisis; capital structure; Debt Sustainability Analysis; dynamics of financial assets and liability; exchange rate; Financial Crisis; financial crisis intensity; Financial statements; foreign currency; Global; government balance sheet; government balance sheet variable; government balance sheets of EME; Government Debt; Government Financial Assets; Government liabilities; gross debt; interest rate; market value; stabilization policy; transmission mechanism; WP
Source: IMF Working Paper — Matteo Ruzzante, "Financial Crises, Macroeconomic Shocks, and the Government Balance Sheet: A Panel Analysis", April 24, 2018, Working Paper No. 2018/093.
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