Revue d'économie et de statistique appliquée
Volume 21, Numéro 1, Pages 07-22
2024-07-25

Unemployment And Sustainability Of Fiscal Policy: An Analysis Using The Accounting Approach For A Set Of Eurozone Countries (1990-2022)



Authors : Khadhraoui Soukaina . Hammami Sami .

Abstract

The main objective of this article is to examine the sustainability of fiscal policy and to interpret these effects on employment in a set of Eurozone countries (1990-2022). Indeed, we presented the accounting approach technique used by the IMF in 1990 to assess the viability of fiscal policy. In order to carry out the accounting diagnosis for each country, we used variables such as public debt as a % of GDP, the economic growth rate, as well as the monetary interest rate in order to calculate the primary balance necessary to stabilize the public debt. Therefore, the statistics relating to the sustainability of the fiscal policy for all the countries studied show that a well-administered and sustainable fiscal policy promotes a favorable and stable environment favoring investment and job creation. Therefore this policy is considered a strictly necessary short and long-term strategy to reduce unemployment, but its absence can create more serious problems in the future.

Keywords

Keywords debt, deficit, fiscal policy, fiscal policy sustainability, unemployment

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