Economics, Econometrics and Finance
3 years ago

Interest rates have weak impact on Bulgaria's government debt, economic growth key.

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SSRN Electronic Journal
The Impact of Interest Rate Changes on Bulgaria’s Government Debt for the Period 2003–2018 (ВЛИЯНИЕ НА ПРОМЕНИТЕ В ЛИХВЕНИТЕ ПРОЦЕНТИ ВЪРХУ ДЪРЖАВНИЯ ДЪЛГ НА БЪЛГАРИЯ ЗА ПЕРИОДА 2003-2018 Г.)
Velichka Nikolova

Paper Summary

The article looks at how changes in interest rates affect Bulgaria's government debt from 2003 to 2018. They studied trends in debt, interest payments, GDP growth, and bond interest rates. The analysis showed that interest rates have a weak impact on debt, while economic growth has a much stronger effect. In simple terms, economic growth influences debt more than interest rates do.