strategies on long-term interest rates - a key fiscal indicator reflecting the costs of government debt service. A government … confronted with high deficits and rising debt will sooner or later need to enact fiscal adjustments in order to avoid solvency … if they were successful and led to lower deficits and debt levels. Instead, financial markets only seem to value strict …

In this paper, we study the impact of fiscal rules, in the form of explicit deficit or debt constraints, on fiscal … volatility, but depending on the target of the rule - public debt or fiscal balance - rules will increase or decrease policy …

, is exposed to exchange rate fluctuations that could affect the value of public debt to GDP ratios over time. This paper …-due to intra-year exchange rate fluctuations-that affects public debt accumulation. Importantly, the inclusion of this often …-ignored stock-flow adjustment term is critical to accurately project public debt levels and any related indicator that could in turn …