De Resende, Carlos (contributor); Rebei, Nooman (contributor) - 2008
debt must be backed by the discounted value of current and future primary surpluses. The remaining fraction of debt is … backed by seigniorage revenues. When k = 1, there is no fiscal dominance, since the fiscal authority backs all debt and …’s intertemporal budget constraint. If k = 0, all debt is backed by the monetary authority and there is complete fiscal dominance. A …
