"We develop a method for identifying and quantifying the fiscal channels that help finance government spending shocks …. We define fiscal shocks as surprises in defense spending and show that they are more precisely identified when defense …% by an increase in primary surpluses. Additionally, we find that long-term debt is more effective at absorbing fiscal risk …

The purpose of budget rules can be explored from the perspective of the expected results, obtained by their enforcement … determinant lies within the budget rules implementation process, this analysis is focused on the influence of several budget rules … the relationship between nominal interest rate and several factors that are strongly connected with the budget rules …