Southern Europe and the Frugal Four: Pathological external indebtedness?
This research uses linear correlation and time-series analysis to examine the evolution of the external debt accumulated in periods of current account deficits and reserve purchases. Statistical data of GIPS countries (Greece, Italy, Portugal and Spain), Ireland, and the United States show that a s...
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
2025-06-01
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| Series: | PSL Quarterly Review |
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| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/18610 |
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| author | Andrea Carrera Luís Cárdenas Víctor Arribas Martínez |
| author_facet | Andrea Carrera Luís Cárdenas Víctor Arribas Martínez |
| author_sort | Andrea Carrera |
| collection | DOAJ |
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This research uses linear correlation and time-series analysis to examine the evolution of the external debt accumulated in periods of current account deficits and reserve purchases. Statistical data of GIPS countries (Greece, Italy, Portugal and Spain), Ireland, and the United States show that a significant portion of the external debt cannot be explained by balance-of-payment (BoP) analysis. Similarly, the study finds that the external debt of the “Frugal Four” countries (Austria, Denmark, The Netherlands and Sweden) is also higher than explainable through BoP data. The research suggests that, due to the very structure of the international payment system, a country’s over-indebtedness is chronic in nature rather than due to behavioural or cultural factors. To tackle the issue, the development of international central banking is thus suggested.
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| format | Article |
| id | doaj-art-5ad055718dab4c93a98b5c441bfda92c |
| institution | Kabale University |
| issn | 2037-3635 2037-3643 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj-art-5ad055718dab4c93a98b5c441bfda92c2025-08-20T03:28:44ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432025-06-017831310.13133/2037-3643/18610Southern Europe and the Frugal Four: Pathological external indebtedness?Andrea Carrera0Luís Cárdenas1Víctor Arribas Martínez2Department of Applied Economics, Structure & History, Faculty of Economics and Business, Complutense University of Madrid, and Complutense Institute for International Studies (ICEI)Department of Applied and Public Economics & Political Economy, Faculty of Economics and Business, Complutense University of Madrid, and Complutense Institute for International Studies (ICEI)European Patent Office (EPO), Munich, Germany This research uses linear correlation and time-series analysis to examine the evolution of the external debt accumulated in periods of current account deficits and reserve purchases. Statistical data of GIPS countries (Greece, Italy, Portugal and Spain), Ireland, and the United States show that a significant portion of the external debt cannot be explained by balance-of-payment (BoP) analysis. Similarly, the study finds that the external debt of the “Frugal Four” countries (Austria, Denmark, The Netherlands and Sweden) is also higher than explainable through BoP data. The research suggests that, due to the very structure of the international payment system, a country’s over-indebtedness is chronic in nature rather than due to behavioural or cultural factors. To tackle the issue, the development of international central banking is thus suggested. https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/18610external debtcurrent accountgrowth modelscomparative political economySouthern EuropeFrugal Four |
| spellingShingle | Andrea Carrera Luís Cárdenas Víctor Arribas Martínez Southern Europe and the Frugal Four: Pathological external indebtedness? PSL Quarterly Review external debt current account growth models comparative political economy Southern Europe Frugal Four |
| title | Southern Europe and the Frugal Four: Pathological external indebtedness? |
| title_full | Southern Europe and the Frugal Four: Pathological external indebtedness? |
| title_fullStr | Southern Europe and the Frugal Four: Pathological external indebtedness? |
| title_full_unstemmed | Southern Europe and the Frugal Four: Pathological external indebtedness? |
| title_short | Southern Europe and the Frugal Four: Pathological external indebtedness? |
| title_sort | southern europe and the frugal four pathological external indebtedness |
| topic | external debt current account growth models comparative political economy Southern Europe Frugal Four |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/18610 |
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