This paper studies the effects of fiscal consolidation on the debt-to-GDP ratio of 11 Euro area countries. Using a … disentangle the main channels through which fiscal consolidation affects the debt ratio. We define a fiscal consolidation episode …

We analyze the interaction between fiscal consolidation and private-sector deleveraging in an economy within a monetary …

We construct a model of a monetary union to study fiscal consolidation in the Periphery of the euro area, through cuts …

long run, minimizing the potentially harmful effect of fiscal consolidation on economic growth. Policies and structural … reforms boosting economic growth allow the debt ratio to decline through economic growth, reducing the need for fiscal … consolidation. …

was most visible during the decade following the euro area sovereign debt crisis, when structurally low real interest …, and a central fiscal capacity. First, risk-based EU-level fiscal rules would link the speed and ambition of fiscal … consolidation to the level and horizon of fiscal risks, as identified by debt sustainability analysis (DSA) using a common …

fiscal consolidation is reversed. We focus on a large sample of 174 countries between 1970 and 2018. We also employ three … there is a fiscal consolidation; iii) there is a crowding-in effect for private investment, from fiscal contractions …

higher inflation, even if accompanied by some financial repression, could reduce public debt burden only marginally in many …