Finanţe: Provocările viitorului (Nov 2019)
A Literature Review on Fiscal Risks
Abstract
The aim of this paper is to analyze several definitions of the concept of fiscal risk, in order to understand its macroeconomic impact. States that have ignored or dealt superficially with fiscal risks have registered increases in public debt or fiscal crises (Bova et al.,2016), hence the importance of studying this concept. To understand the amplitude of the phenomenon, we note that there was a situation where the materialization of a fiscal risk attracted huge costs for a country, at the maximum level of 56.8% of its GDP (Indonesia). This overwhelming ratio sounds an alarm signal regarding the management of the situations that imply fiscal risks within the economy of each country, but for the beginning it is necessary to reveal the meaning of this notion.
