The fiscal sustainability of China and the United States is of major concern globally. Based on comparative data analysis, this paper reveals that the government debt level of both countries is within the normal range...The fiscal sustainability of China and the United States is of major concern globally. Based on comparative data analysis, this paper reveals that the government debt level of both countries is within the normal range. Robust growth prospects of both countries will also vigorously support their future mitigation of government debt level. Comparatively speaking, China＇s government debt level is healthy and, despite extensive concerns, even its local government debt is not very high. The assessment that China may encounter a crisis is not supported by evidence. Yet in the long run, both countries will face pressures from increased fiscal spending on elder care and healthcare stemming from an ageing population, which will threaten their fiscal sustainability. These challenges require both countries to speed up reforms of elder care and healthcare. Specifically, China needs to focus on elder care reforms and the US should attach more importance to healthcare reforms.展开更多
Two rounds of leveraging-up have led to a high debt ratio in the Chinese economy, triggered liquidity mismatch and increased systemic financial risks. The key causes of local government liabilities are soft budget con...Two rounds of leveraging-up have led to a high debt ratio in the Chinese economy, triggered liquidity mismatch and increased systemic financial risks. The key causes of local government liabilities are soft budget constraints and non-market-based factor allocation. Currently, the risks of local government liabilities are generally controllable. This paper concludes that the long-term solution to managing local government liabilities is to enhance budget constraint and institutional assurance and proposes countermeasures in the reform of urban construction investment and ftnancing mechanisms.展开更多
The paper focuses on a comparison of two contrasting approaches： having a single universal currency in a given fiscal area or supporting a concurrent presence of more competing currencies of different types. A system...The paper focuses on a comparison of two contrasting approaches： having a single universal currency in a given fiscal area or supporting a concurrent presence of more competing currencies of different types. A systemic analysis （based on studying both conventional and unorthodox literature） of the modern monetary system points out that the very type of money that is used suffers internal errors that make a crisis inevitable. The indebtedness is systemic and unavoidable in a currency that is issued as a liability. Parallel currencies are proposed as a general solution. A specific solution, including a redefined national currency, is offered too, with an outline of its possible experimental verification. Such a system could help to prevent the next economic crisis, mitigate it, or at least facilitate its leaving. The paper also deals with criticism that is held against the idea of concurrent currencies.展开更多
In order to have the optimal capital structure, the company with higher volatility of return adjusts the capital structure more frequently and has shorter debt maturity. Investors also have shorter investment cycle on...In order to have the optimal capital structure, the company with higher volatility of return adjusts the capital structure more frequently and has shorter debt maturity. Investors also have shorter investment cycle on these companies. Investment cycle is also affected by information asymmetry. The less asymmetric the information is, the more information investors get and the longer the investment cycle is. The adjustment frequency is also restricted by financial strength. This paper measures the debt maturity structure of the firm as the weighted average of debt maturity, and it is more precise than the ratio of long term debt to total debt. In empirical tests on debt maturity, the results show that financial strength, volatility of return and asymmetric information all have negative impacts on debt maturity.展开更多
The impact of Polish fiscal policy on economy after accession to the euro area is analyzed in the article. It was found that government spending financed by distortionary taxation affects output in a different way tha...The impact of Polish fiscal policy on economy after accession to the euro area is analyzed in the article. It was found that government spending financed by distortionary taxation affects output in a different way than in case of government spending financed by bonds. Poland＇s accession to the Economic and Monetary Union will reduce the possibility of increased government spending financed by bonds, which in light of the presented model will greatly reduce the possibility of stimulating the economy through fiscal policy.展开更多
we have done the research on the influence of debt financing on corporate investment Based on political relations perspective. The results show that the impact of debt financing on corporate investment from the politi...we have done the research on the influence of debt financing on corporate investment Based on political relations perspective. The results show that the impact of debt financing on corporate investment from the political perspective and confirmed debt financing is more easily lead to inefficient investment under the influence of political relations.展开更多
文摘The fiscal sustainability of China and the United States is of major concern globally. Based on comparative data analysis, this paper reveals that the government debt level of both countries is within the normal range. Robust growth prospects of both countries will also vigorously support their future mitigation of government debt level. Comparatively speaking, China＇s government debt level is healthy and, despite extensive concerns, even its local government debt is not very high. The assessment that China may encounter a crisis is not supported by evidence. Yet in the long run, both countries will face pressures from increased fiscal spending on elder care and healthcare stemming from an ageing population, which will threaten their fiscal sustainability. These challenges require both countries to speed up reforms of elder care and healthcare. Specifically, China needs to focus on elder care reforms and the US should attach more importance to healthcare reforms.
文摘Two rounds of leveraging-up have led to a high debt ratio in the Chinese economy, triggered liquidity mismatch and increased systemic financial risks. The key causes of local government liabilities are soft budget constraints and non-market-based factor allocation. Currently, the risks of local government liabilities are generally controllable. This paper concludes that the long-term solution to managing local government liabilities is to enhance budget constraint and institutional assurance and proposes countermeasures in the reform of urban construction investment and ftnancing mechanisms.
文摘The paper focuses on a comparison of two contrasting approaches： having a single universal currency in a given fiscal area or supporting a concurrent presence of more competing currencies of different types. A systemic analysis （based on studying both conventional and unorthodox literature） of the modern monetary system points out that the very type of money that is used suffers internal errors that make a crisis inevitable. The indebtedness is systemic and unavoidable in a currency that is issued as a liability. Parallel currencies are proposed as a general solution. A specific solution, including a redefined national currency, is offered too, with an outline of its possible experimental verification. Such a system could help to prevent the next economic crisis, mitigate it, or at least facilitate its leaving. The paper also deals with criticism that is held against the idea of concurrent currencies.
文摘In order to have the optimal capital structure, the company with higher volatility of return adjusts the capital structure more frequently and has shorter debt maturity. Investors also have shorter investment cycle on these companies. Investment cycle is also affected by information asymmetry. The less asymmetric the information is, the more information investors get and the longer the investment cycle is. The adjustment frequency is also restricted by financial strength. This paper measures the debt maturity structure of the firm as the weighted average of debt maturity, and it is more precise than the ratio of long term debt to total debt. In empirical tests on debt maturity, the results show that financial strength, volatility of return and asymmetric information all have negative impacts on debt maturity.
文摘The impact of Polish fiscal policy on economy after accession to the euro area is analyzed in the article. It was found that government spending financed by distortionary taxation affects output in a different way than in case of government spending financed by bonds. Poland＇s accession to the Economic and Monetary Union will reduce the possibility of increased government spending financed by bonds, which in light of the presented model will greatly reduce the possibility of stimulating the economy through fiscal policy.
文摘we have done the research on the influence of debt financing on corporate investment Based on political relations perspective. The results show that the impact of debt financing on corporate investment from the political perspective and confirmed debt financing is more easily lead to inefficient investment under the influence of political relations.
