The paper addresses first the question of sustainability of debt growth by examining the behavior of taxation implied by fiscal rules respecting a government`s intertemporal budget constraint. Sustainable debt growth may require the tax burden to rise above some socially acceptable level. In...

This paper is a first attempt at evaluating the determinants of the total interest rate differentials on government bonds between high yielders, namely Italy, Spain, Sweden and Germany. In particular we address the question of the relative importance of local and global factors in the...

This paper is a first attempt at evaluating the determinants of the total interest rate differentials on government bonds between high yielders, namely Italy, Spain, Sweden and Germany. In particular we address the question of the relative importance of local and global factors in the...