TITLE

THE EFFECT OF FISCAL DEFICIT ON INTEREST RATE IN REPUBLIC OF CROATIA

AUTHOR(S)
Krtalic, Sandra; Benazic, Manuel
PUB. DATE
October 2010
SOURCE
Conference Proceedings: International Conference of the Faculty ;2010, p1
SOURCE TYPE
Conference Proceeding
DOC. TYPE
Article
ABSTRACT
The article discusses a study which examines the impact of fiscal deficit on interest rate in Croatia. Results show that increase in budget deficit affects the economy, specially interest rates which increases the borrowing costs of the other economic segments. It found that consumer prices affected the variability of interest rates and budget deficit, while budget deficit affected the variability of interest rates and consumer prices.
ACCESSION #
79299861

 

Related Articles

  • Deficit-Financed Tax Cuts and Interest Rates. Leduc, Sylvain // Business Review (Federal Reserve Bank of Philadelphia);2004 Second Quarter, p30 

    Proposals to lower taxes often meet with opposition in Congress. One argument is that lowering taxes without an equivalent fall in government spending may lead to future budget deficits, which will translate into higher long-term interest rates and a lower level of income. In this article,...

  • Pressure On Hungary's Budget Deficit.  // Emerging Markets Monitor;2/21/2005, Vol. 10 Issue 43, p13 

    Discusses the challenges to Hungary's budget deficit in February 2005. Criticisms against the failure of the Hungarian government to improve its full year budget deficit target; Increase in real interest rates in the country; Impact of reduced value added tax income on public revenues;...

  • A Note on Deficit, Implicit Debt, and Interest Rates. Zijun Wang // Southern Economic Journal;Jul2005, Vol. 72 Issue 1, p186 

    This short note revisits the long-standing issue of the relationship between government borrowings and interest rates using vector autoregression (VAR) models. In particular, we consider the dynamic impacts of both official deficit and implicit debt on the interest rates. Two measures of...

  • NO RESERVATIONS. STEYN, GRETA // Finweek;10/8/2009, p67 

    The article focuses on the condition of the account deficit in South Africa in 2009. It notes that the country's account has decreased in the second quarter from the very different situation that dominated for more than four years previously. According to the article, it is the broadest measure...

  • Federal budget deficits and long-term interest rates in USA Kiani, Khurshid M. // Quarterly Review of Economics & Finance;Feb2009, Vol. 49 Issue 1, p74 

    Abstract: We investigate whether the emergence of high inflation rates after 1965 and large budget deficits after 1980s caused the financial market agents to become more sensitive to the outlooks for inflation and budget deficits. Our approach is parametric and our models fully account for...

  • The Financial Implications of a VAR Model of the Determinants of Exchange Rates: The Case of South Korea. Yvonne Chen; Yu Hsing // International Journal of Management;Sep2005, Vol. 22 Issue 3, p332 

    Applying a VAR model based on a sample from 1981.Q1 – 2002.Q3, the nominal exchange rate in Korea was found to have a positive response to a shock to the U.S. output, real budget deficits, the price level in the U.S., and its own lagged values. The exchange rate reacts negatively to a...

  • Canada budget deficit widens. Investor's Business Daily // Investors Business Daily;12/ 2/2013, pA02 

    The deficit reached $3.8 bil in Sept. vs. $2.2 bil a year earlier. The increase was due to the $2.8 bil price tag for disaster assistance in Alberta, somewhat mitigated by the sale of

  • Türkiye'de yüksek faiz politikası ve yurtiçi-yurtdışı faiz oranları farkını etkileven faktörler. Yurdakul, Funda // International Journal of Human Sciences;2009, Vol. 6 Issue 1, p14 

    The main purpose of this paper is to examine what factors explain the difference between effective interest rates of Turkey and USA. The paper considers seven variables explaining interest rate spread such as general prices, Gross Domestic Product (GDP), exchange rate, credibility index, level...

  • Fallout from the Federal Deficit. Greenblatt, Alan // Governing;Feb2004, Vol. 17 Issue 5, p86 

    Discusses information on federal deficit in the U.S. as of February 2004. Action to be taken by the U.S. Congress and government in dealing with federal deficit; Impact of the deficit on interest rates; Comments of Alice Rivlin, a former federal budget director on the issue; Views of Brian...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics