Public Debt Dynamics Versus the Value of Stock-Flow Adjustment in the European Union
Public Debt Dynamics Versus the Value of Stock-Flow Adjustment in the European Union

Summary/Abstract: The debt crisis forced the European Union to reform the Stability and Growth Pact. The aim of the paper is to evaluate the influence of the reform on the dynamics of public debt and its correlation with stock-flow adjustment in the European Union. The undertaken analysis was based on the TOPSIS method. The synthetic measure was based on chosen variables which reflect the public debt dynamics. An analysis of correlations was also performed to find relations between the debt dynamics and stock-flow adjustment. The undertaken analysis has shown that the majority of EU countries reduced public debt in the analyzed period. We can also observe that there is abstrong correlation between public debt and stock-flow adjustment in the group of the most successful countries in the area of public debt dynamics. The article introduces absynthetic measure of public debt dynamics which is wider that abchange of public debt. Moreover, the relation between public debt dynamics and stock-flow adjustment was analyzed.

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