This paper introduces a methodological innovation into Generational Accounting. By incorporating cyclically-adjusted balances into the forward-looking budget projections underlying the concept we isolate pure policy effects, which render comparisons of the fiscal sustainability indicators...

What sustained borrowing without third-party enforcement, in the early days of sovereign lending? Philip II of Spain accumulated towering debts while stopping all payments to his lenders four times. How could the sovereign borrow much and default often? We argue that bankers' ability to cut off...

If it had not been for the sovereign debt crisis, the negotiation of the Multiannual Financial Framework (MFF) 2014-2020 would have been the leading topic during these months. The current negotiation is taking place at a time when budget consolidation requires the limitation of public...

In this paper we attempt to evaluate the sustainability of Spanish fiscal policy, taking as a benchmark the test proposed by Quintos (1995). In this analysis we take into account the possible existence of structural breaks in the cointegration relationship between public revenues and...

En este trabajo se ilustran los efectos de distintas medidas de consolidación fiscal sobre la actividad económica mediante simulaciones realizadas con un modelo de equilibrio general calibrado para la economía española. Los resultados muestran que, con carácter general, el proceso de...