Intro -- Contents -- I. INTRODUCTION -- II. THE POLITICAL ECONOMY OF FISCAL FRAMEWORKS -- III. DEVELOPMENTS UNDER THE FISCAL FRAMEWORK -- IV. EXPLAINING DIVERGENT COUNTRY EXPERIENCES: EMPIRICAL RESULTS -- V. CONCLUSION -- REFERENCES.

"This paper looks at fiscal solvency and public debt sustainability in both emerging market and advanced countries. Evidence of fiscal solvency, in the form of a robust positive conditional relationship between public debt and the primary fiscal balance, is established in both groups of...