Methods of Estimating the Alternative Reference Values of Macroeconomic Fiscal Instruments in the Extraordinary Situations

Abstract

The reference values of the deficit/GDP ratio and of the debt/GDP ratio are constant and they are equal 3% for the deficit/GDP ratio and 60% for the debt/GDP ratio in European Union countries. The occurrence of extraordinary situations, such as the financial crisis, economic crisis, military conflict or pandemic, often makes it impossible to meet the fiscal criteria when there are constant reference values for deficit/GDP ratio and for debt/GDP ratio.