U.S. public and private debt is traced to the decision of the First Congress in 1790 to borrow the new nation's money supply. This established a debt imperative that requires debt to grow by compounding interest. When debt fails to grow enough, the economy goes into various degrees of recession....

This paper analyzes recent macroeconomic developments in the eurozone, particularly in Germany. Several economic indicators are sending signals of a looming German recession. Geopolitical tensions caused by trade disputes between the United States and China, plus the risk of a disorderly Brexit,...

Two specialists on fiscal policy in the Czech Republic examine the deterioration of that country's fiscal position during the late 1990s and outline its causes and consequences. Particular attention is devoted to developments in the government sector, extra-budgetary activities, sources of...

The extent of government deficits and debt has been one of the most debated issues in recent years. However, much less has been contributed about their dynamics. Yet, the issue of entering into and exiting from excessive deficits is critical in the Economic and Monetary Union since the Stability...

The paper analyses theoretically what role fiscal councils could play and surveys empirically the activities of existing councils. Case studies of the Swedish Fiscal Policy Council and the UK Office for Budget Responsibility are done. It is concluded that fiscal councils should be advisory,...

With the announcement to intervene on the financial markets in case of need to keep the Eurozone intact, the ECB has attenuated the pressure of the markets on the endangered peripheral countries of the Eurozone. Critics argue that by eliminating the market’s disciplining interest mechanism,...

The paper looks at the determinants of fiscal adjustments as reflected in the primary surplus of countries. Our conjecture is that governments will usually find it more attractive to pursue fiscal adjustments in a situation of relatively high growth, but based on a simple stylized model of...

The paper analyses theoretically what role fiscal councils could play and surveys empirically the activities of existing councils. Case studies of the Swedish Fiscal Policy Council and the UK Office for Budget Responsibility are done. It is concluded that fiscal councils should be advisory,...

In this paper we analyze the dynamics of public investment and public finance in new members of the European Union, and also how these sectors were affected by changes in economic freedom and corruption. When we assess the role of regulation and corruption on public investment, we find that...

Measures targeted at the revenue side of the budget can contribute between €10 and €28 billion to the consolidation of public finances in Austria. This total amount could be reached without harming the economy via an increase of excise taxes, an enhanced taxation of wealth and the abolition...