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 … expenditure bias is about an order of magnitude more severe than the debt bias and has a major impact on welfare through higher …

, effective revenue ceilings induce an increase in deficit, debt and inflation. Under many scenarios, including recurrent adverse … policies are conducted by a discretionary and profligate government, I find that revenue ceilings vastly outperform debt …, deficit and monetary rules, both in effectiveness at curbing public spending and welfare for private agents. However …