The Management of Public Debt in the Economy and the Assessment of Its Sustainability: The Case of the Republic of Kosovo

Considering that developed countries face a planned and developed macroeconomic economy where almost nothing is missing, as if all countries in the world had this possibility of macroeconomic development, but there are countries that still face an economy that requires a more detailed macroeconomic restructuring and development, where in these states people are faced with high unemployment, with a fiscal and monetary policy in development, where the state is forced to take on debt, whether internal or external, where the latter is more favored. The purpose of this paper is to show through this analysis the effect that public debt has on private consumption with special emphasis on countries in transition, where the factors that will affect private consumption will be explained, the types of debt that the state takes into account. The countries of the region will be analyzed in more detail, which countries face this problem the most. Also, our country Kosovo will be analyzed in detail, what relationship exists between public debt and private consumption. The realization of this research will be done with the STATA statistical software, as dependent variable is Private Consumption, while as independent variables are: Government Debt, Gross Fixed Capital Formation, Foreign Direct Investments, Consumer Price Inflation, Export of Goods and Services and GDP Growth. This paper is a compilation of information from multiple sources in order to provide a description of the reality that countries in transition face when taking on debt.