each other, it is often claimed that the EU fiscal framework, by reducing the budgetary room for manoeuvre and the …While according to the so-called ‘Brussels-Frankfurt consensus’, sound fiscal policies and structural reforms support … relationship between fiscal discipline and reforms. By means of a simple model we show that, depending on the time horizon of the …

Under numerical fiscal rules, such as those underpinning EMU, governments have strong temptations to use accounting … tricks to meet the fiscal constraints. Given these political incentives, fiscal variables that in the past were regarded as a … constrained optimisation by fiscal authorities. Econometric evidence provides results consistent with the model findings. The SFA …