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This paper studies whether budget rigidities affect the probability of countries getting into fiscal distress and reduce the likelihood of governments performing fiscal adjustments. Budget rigidities are constraints that limit the ability of the government to change the size and structure of the...
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though they are individually solvent, and cheaper access to credit on average, since lenders are at risk only if no … hinge critically on the timing of its introduction: Introducing such instruments at the peak of the Eurozone crisis would …
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