Favero, Carlo A. (contributor); … - 2007
adjusting
taxes and spending so as to keep the ratio of public debt-to-GDP stable, or
it may delay the adjustment and let the … macroeconomic vari-
ables, but not to the level of the public debt. This omission is particularly
surprising for countries where the …
estimating the effects of fiscal policy shocks, omitting the response of taxes
and spending to the level of the public debt is …