The analysis focuses on the government budget constraint and the resolution of inconsistent implications of different … reforms may cause jumps in inflation and the exchange rate through their impact on the government budget. In order to achieve …

allows a minister, whose realized real budget falls short of a threshold, to ask for a treasury, the minister obtains the … extra funds needed to meet the expenditure threshold level. The contract sets both the projected budget and the threshold … real expenditure that justifies budget revisions. We identify the efficient contract and show that for significant state …

The intertemporal budget constraint of the government implies a relationship between a ratio of current liabilities to …

economic growth. This paper examines the roles of three other factors: primary budget surpluses, surprise inflation, and pegged … would have followed with primary budget balance and without the distortions in real interest rates caused by surprise …