Di Giorgio, Giorgio; Nisticò, Salvatore - In: Journal of Economic Dynamics and Control 37 (2013) 1, pp. 210-230
responds to debt dynamics, is crucial for the dynamics of net foreign assets. We show that under a counter-cyclical fiscal rule … foreign assets dynamics. Our results imply that the degree of “fiscal discipline”, i.e. the extent to which the fiscal rule … fiscal policy. We derive the dynamic and cyclical properties of fiscal deficit feedback rules and their implications for net …