Castro-Valderrama, Marcela de; Moreno-Arias, Nicolás; … - 2023
Should a government have more than one fiscal rule constraining fiscal aggregates? If so, why? In this paper, we … implementing a budget balance rule and a debt anchor rule is non-redundant and welfare-improving. Our findings suggest that the … implementation of a combination of fiscal rules is optimally preferred over a single rule, as each rule has a different effect on …