The paper explores the macroeconomic consequences of fiscal consolidations whose timing and composition - either tax …- or spending-based - are uncertain. We find that the composition of the fiscal consolidation, its duration, the monetary … policy stance, the level of government debt, and expectations over the likelihood and composition of fiscal consolidations …

deduction. We find that among these fiscal tools, eliminating the mortgage interest deduction would be the most effective in …

inflation expectations are an important addition to the global Phillips curve. And third, the fiscal policy stance helps explain …