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The extensive public sector measures in support of the financial sector have been key to managing the financial crisis that erupted in mid-2007 and intensified after the bankruptcy of Lehman Brothers. This article looks into the measures taken by central banks to contain the impact of the...
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The Swiss debt brake served as a model for the new German budget rule. The two tools share the long-term goal of rendering fiscal policy sustainable by stabilising nominal debt as well as the short-term goal of smoothing the economic cycle. Debt brakes thus act as an automatic stabiliser within...
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