good times and complying with the Stability and Growth Pact. - Interest rates ; fiscal policy ; government debt ; crisis …

In most euro area countries, the monetary/fiscal policy mix is responsible for the changing history of debt and … simulations reveal that the PM/AF regime in France led to price volatility and debt stabilisation, while the AM/PF regime resulted … in disinflation and rising debt trajectory. Meanwhile, Italy's procyclical fiscal policy in downturns contributed to …

This paper investigates the average impact of government debt on per-capita GDP growth in twelve euro area countries … over a period of about 40 years starting in 1970. It finds a non-linear impact of debt on growth with a turning point …—beyond which the government debt-to-GDP ratio has a deleterious impact on long-term growth—at about 90-100% of GDP. Confidence …

both the interest rate on public debt and base interest of the economy. The presence of habits also has implications for … the cost of debt, default risk premium and the cost of default, and can shed light on country heterogeneities. …

The paper reviews the economic risks associated with regimes of high public debt through DSGE model simulations. The … large public debt build-up following the 2009 global financial and economic crisis acted as a shock absorber for output …, while in the recent and more severe COVID19-crisis, an increase in public debt is even more justified given the nature of …

for debt sustainability and, second, the reform of the EU fiscal governance framework. In both debates the choice of … government debt anchor and the speed of adjustment take centre stage. The Stability and Growth Pact's debt rule appears … predestined to fulfil the role of debt anchor. However, our analysis shows that its existing design gives rise to a pro …

characteristics on personal finances. - Personal Finance ; Financial Strain ; Debt ; Behaviour ; Financial Literacy …