, may be in the long-term interest of a country. Validating default fears and high risk premia on government debt can be a …

concern that it may generate unsustainable debt burden, considering the country’s delinquent monetary policy and a historical … deficit bias. The objective of this paper is to assess sustainability of public debt. First, we use Cecchetti, et al. (2010 …) methodology to regress public debt on indicators of fiscal stance i.e. primary deficit and structural deficit at federal level for …

The fiscal policy environment central banks operate in can be radically different with respect to debt levels, maturity … targeting or monetary nominal income targeting may yield social gains in an economy with government debt and where the fiscal … policymaker, acting strategically, may support or undermine the policies of the central bank. We argue that the level of debt, its …

policies are conducted by a discretionary and profligate government, I find that revenue ceilings vastly outperform debt …, effective revenue ceilings induce an increase in deficit, debt and inflation. Under many scenarios, including recurrent adverse … reduce spending rather than raising revenue to lower debt …

discount the future? When the fiscal authority sets debt as its main policy instrument it achieves fiscal dominance, rendering … interest rate it renders fiscal impatience (its debt bias) irrelevant, but still faces its expenditure bias. I find that the … minor. In contrast, the debt bias affects debt, deficits and inflation, but has a minor impact on expenditure and welfare. I …

and debt. Mainstream economists have raised issues of excessive inflation, “crowding out” of private sector investment … these concerns are based on a misunderstanding of the role played by the deficit, debt, and taxes in the U.S. economy, even …

structure and growing contingent liabilities may have implications for fiscal debt sustainability in the medium term. Since the … the central bank and the government is crucial both in terms of policy stance and public debt management, which will also …" Fiscal Policy, Public Debt and Monetary Policy in Emerging Market Economies …