IMF Working Papers

Stock-Flow Adjustments and Fiscal Transparency: A Cross-Country Comparison

By Anke Weber

January 1, 2012

Download PDF

Preview Citation

Format: Chicago

Anke Weber. Stock-Flow Adjustments and Fiscal Transparency: A Cross-Country Comparison, (USA: International Monetary Fund, 2012) accessed December 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Over the past three decades, large and persistent discrepancies between the annual change in public debt and the budget deficit, so-called stock-flow adjustments, were a prominent feature of debt dynamics in many economies. The aim of this paper is to investigate the underlying determinants of such discrepancies and their relationship with fiscal transparency using data for 163 countries. Results show that such discrepancies can only be partly explained by balance sheet effects and the realization of contingent liabilities and that significant differences exist in average stock-flow adjustments across countries reflecting country-specific factors. The more fiscally transparent the country, the smaller these tend to be. The contribution of stock-flow adjustments to increases in debt is likewise smaller in countries with above average fiscal transparency. This may not be coincidental, as a lack of fiscal transparency may make it easier for governments to engage in deceptive fiscal stratagems.

Subject: Asset and liability management, Banking crises, Budget planning and preparation, Debt reduction, Financial crises, Fiscal transparency, Government debt management, Public debt, Public financial management (PFM)

Keywords: A. data sources, Accumulation equation, Balance sheet effect, Banking crises, Budget Deficits, Budget planning and preparation, Debt, Debt change, Debt decrease, Debt forgiveness, Debt increase, Debt reduction, Debt-reducing measure, Europe, Financial assets accumulation, Fiscal Transparency, Global, Government debt management, Low-income economy, Public Debt, Stock-flow adjustment, WP

Publication Details

  • Pages:

    19

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2012/039

  • Stock No:

    WPIEA2012039

  • ISBN:

    9781463933821

  • ISSN:

    1018-5941

You May Also Be Interested In...

A Confidence-Financial Inclusion Nexus in the Caucasus and Central Asia?

December 20, 2024

Ukraine: Sixth Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of a Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ukraine

December 20, 2024

Islamic Republic of Mauritania: Staff Report for the 2024 Article IV Consultation, Third Review Under the Arrangements Under the Extended Credit Facility and Extended Fund Facility, Request for Modification of Quantitative Performance Criteria, and Second Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for the Islamic Republic of Mauritania

December 20, 2024

Ecuador: 2024 Article IV Consultation and First Review Under the Extended Arrangement Under the Extended Fund Facility and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ecuador

December 19, 2024