RETHINKING THE ROLE OF PUBLIC DEBT POLICY IN SHAPING STATE FINANCIAL RESILIENCE
DOI:
https://doi.org/10.35774/Keywords:
financial resistance, debt policy, debt sustainability, economic growth, public debt, debt burden, fiscal constraints.Abstract
Introduction. Ukraine’s current macroeconomic conditions are shaped by the ongoing war, a persistent budget deficit, and an increasing reliance on external financing. This is accompanied by a rising debt burden and deepening structural imbalances in the system of public finances. Under such circumstances, traditional approaches to ensuring financial stability prove to be limited and require reconsideration. This confirms the relevance of advancing the concept of financial resilience while strengthening the role of debt policy in ensuring it.
The purpose of the article is to substantiate the need to rethink the role of debt policy in shaping the financial resilience of the state under conditions of instability and increased debt dependence.
Results. The article systematizes theoretical and applied approaches to interpreting the financial resilience of the state and justifies the need to distinguish it from the categories of financial stability and resilience. It is demonstrated that financial resilience represents a dynamic characteristic of the economic system, combining the ability to withstand shocks with the capacity for adaptive transformation of public finances. The key indicators for its assessment are systematized, and an interpretation is proposed through solvency, fiscal flexibility, the availability of financial reserves, and the effectiveness of debt policy. The necessity of transitioning to an adaptive model of debt policy as a tool for ensuring the long-term financial resilience of the state is substantiated.
Conclusions. The results indicate that the financial resilience of the state is not limited to maintaining debt indicators within predefined thresholds but is determined by the ability of the economic system to adapt to prolonged shocks and preserve its functional capacity. The effectiveness of debt policy depends not only on its role as a stabilization instrument but also on its function as a mechanism for structural adaptation of the economy. A transition to active management of financial resilience based on the alignment of debt dynamics, fiscal capacity, and the adaptive potential of the economic system is proposed.
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