Reicher, Claire A. - 2014 - This version: September 30, 2014
rules to ensure stable debt and output paths when taxes are distortionary, particularly in a small open economy. In this … stabilizing, or "passive", in equilibrium. For instance, under moderate debt-multiplier combinations, a debt-GDP targeting rule … can result in instability, while a debt-level targeting rule, irrespective of GDP, can result in stability. A primary …