Reicher, Claire A. - 2014 - This version: September 30, 2014
can result in instability, while a debt-level targeting rule, irrespective of GDP, can result in stability. A primary … deficit target may result in instability for the debt but stability for output, while a total deficit target can result in … rules to ensure stable debt and output paths when taxes are distortionary, particularly in a small open economy. In this …
