We characterise optimal tax policies when the government has access to consumption taxation and cannot credibly commit … to future policies. We consider a neoclassical economy where factor income taxation is distortionary within the period … only labour and capital income are taxed, the optimal time-consistent policies with consumption taxation are remarkably …

fiscal stance when public-debt-to-GDP ratios are higher - but only in the euro area, not in advanced stand-alone countries …

debt above 60 percent or deficits above 3 percent of GDP. We find that the proposed framework would require ambitious … fiscal adjustment: on average, more than 2 percent of GDP over the medium term, in addition to the adjustment that is already … framework. We also find that for most countries with debt above 60 percent of GDP, these adjustment requirements are driven by …