SVAR models that include a single world price (such as the terms-of-trade) predict that world shocks explain a small … multiple commodity prices transmit world disturbances. Estimates on a panel of 138 countries over the period 1960-2015 indicate … that world shocks explain on average 33 percent of output fluctuations in individual economies. This figure doubles when …

-budget rules that allow for bounded secondary surpluses or deficits. Comparing our results to those emphasized in the fiscal theory …

that these conditions depend not only on the monetary-fiscal regime (as emphasized in the fiscal theory of the price level …