policies are conducted by a discretionary and profligate government, I find that revenue ceilings vastly outperform debt …, effective revenue ceilings induce an increase in deficit, debt and inflation. Under many scenarios, including recurrent adverse … reduce spending rather than raising revenue to lower debt …

Friedman rule that eliminates the liquidity premium on scarce treasury debt. We derive conditions for determinacy under both …

discount the future? When the fiscal authority sets debt as its main policy instrument it achieves fiscal dominance, rendering … interest rate it renders fiscal impatience (its debt bias) irrelevant, but still faces its expenditure bias. I find that the … expenditure bias is about an order of magnitude more severe than the debt bias and has a major impact on welfare through higher …

deficit and debt ceilings. For a variety of aggregate shocks considered, the best policy is to impose a minimum primary … transitions is a key component of good institutional design. Debt ceilings are benign, but always dominated by deficit constraints …