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№ 9/2019

№ 9/2019

Fìnansi Ukr. 2019 (9): 43–63
https://doi.org/10.33763/finukr2019.09.043

PUBLIC FINANCE MANAGEMENT

BOHDAN Tetiana 1

1NGO “Growford Institute”
OrcID ID : https://orcid.org/0000-0002-6133-5336


Global debt as indicator of world economic problems and challenges for financial policy of Ukraine


The article indicates the main trends in evolution of the global debt, analyses its structure across economic sectors and country groups. Author shows the main risks of accumulated debt burden and emphasizes the low risks of systemic global debt crisis in the short run, that is explained by healthier banking sector (that was a generator of the last financial crisis). At the same time a high public sector debt in the advanced countries incurs low risks of defaults under the implicit guarantees of their central banks to support government solvency in the case of crisis. Key debt-related risks for different economic sectors are identified in a global context. The article also investigates the financial channels of shocks transmission and crises diffusion in an emerging market economy and highlights the role of debt-creating capital flows. Presented research is based on the analytical, historical and econometric methods. Author considers the macroeconomic implications of the external debts in emerging market economies and provides empirical estimates of economic growth effect in Ukraine. Goals and instruments of the strategic management of public and private debts in Ukraine are proposed that encompass a design of efficient system for macro-prudential regulation, foreign direct investments promotion as an opposite to foreign loans, prudent public debt management that concerns a proper design and implementation of the fiscal rules, a revise of the GDP-warrants’ terms (their renegotiation), and improving Ukraine’s collaboration with international financial institutions.

Keywords:global debt, emerging markets, corporate debt, capital flows, public debt management, macro-prudential policy

JEL: F34, F62, H63


BOHDAN T. . Global debt as indicator of world economic problems and challenges for financial policy of Ukraine / T. . BOHDAN // Фінанси України. - 2019. - № 9. - C. 43-63.

Article original in Ukrainian (pp. 43 - 63) DownloadDownloads :216
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