This paper presents a two period overlapping generations model with endogenous growth in the presence of a public sector with objectives of convergence for public debt and primary balance to GDP ratios. In order to ensure the existence of converging paths towards the target values of fiscal...

In the context of crisis in Europe and of relative heyday in Latin America that was experienced at the beginning of this decade, we talk about the need for fiscal rules as a common formula to be implemented in these two worlds. It is needed here the role of this instrument and places it within...

This paper presents a review of the most significant fiscal rules policymakers can choose from. The insights from this review are then applied to the current budgetary situation of the European Union. In the European Union, the supranational Stability and Growth Pact (SGP) should provide the...