ON SEPARATION OF MONETARY AND FISCAL OPERATIONS IN MACROECONOMIC STATISTICS

Abstract

The aim of the paper is to discuss one of the major topical and controversial issues in contemporary statistics, which is the separation of monetary and fiscal operations in national accounts. This issue revolves mainly around the operation of public financial institutions mandated to carry out monetary as well as fiscal transactions on behalf of governments. After discussing the methodological dimension of the point at issue, the paper numerically demonstrates the impact on final figures given the existing data constraints. Admittedly, substantial changes to the current recporting may modify the aggregates utilized in the analysis of the fiscal sustainability or the economic role of the government as such. The paper demonstrates that the statistical uncertainty about the size of the government sector is a fundamental issue. The impact on the level of government indebtedness may reach up to tens of percentage points.