Budget credibility, or the ability of governments to accurately forecast macro-fiscal variables, is crucial for …

incentive constraints on the policy making process, such as lack of credibility, political opportunism, political ideology, and …: it covers credibility issues, political business cycles, and optimal design of monetary institutions. Part II deals with … fiscal policy in a dynamic general equilibrium set up: the main topics here are credibility of tax policy, and political …

rule. Lagged implementation characterizes the setup of the German debt brake and raises credibility issues. In a second … step, we analyze a unique survey of members of all 16 German state parliaments and show that the debt brake’s credibility …