Plödt, Martin; Reicher, Claire - In: Revue de l'OFCE N° 132 (2014) 1, pp. 111-134
We project the path of the public debt and primary balances for a number of countries in the euro area under a fiscal rule based on a set of estimated fiscal policy reaction functions. Our fiscal rule represents a fiscal analogue to a well-known monetary policy rule, and it is calibrated using...