This article deals with public debt dynamics in France. It also analyses several contemporary debates such as Ricardian equivalence, sustainability and budget balance decomposition. Public deficit is not necessarily the result of a Keynesian type of expansionary fiscal policy. It can also stem...

This paper develops an intertemporal model of legislative bargaining in the presence of distorting redistributive instruments. It includes negotiations in the cabinet and in the parliament that acts with or without coalitional discipline. We focus on the comparison of outcomes with negotiations...

The role of movements in real rates in explaining the relationship between long and short-term interest rates is explored using a model of optimal government debt management.

This paper analyzes the implications of a cost of deviating upwards from a public-debt/output guideline, as the 0.6 ratio in the Maastricht Treaty, in the context of a fiscal policymaking model. Given a pre-announced timetable for enforcement, the dynamic paths of the tax rate and government...

Vast literature have documented that the Philippine economic crisis from1983-1985 has been due to extravagant fiscal policy and to the proliferation of government-owned and/or controlled corporations. This paper presents an overview of the macroeconomic role and the management framework within...

In a simple stochastic overlapping generation model, individuals work when young and retire when old, generations’ productivity is affected by a serially uncorrelated random shock, and fiat money and nominal public debt are the only storable assets. In this setting, we show that social...

As part of the assessment of the Aquino Administration, this paper investigates the Philippine management on external debt. The insights offered here is valuable to future steps the present and succeeding government might wish to undertake.

We explore the dynamics of public debt in the presence of political shocks, in the form of shocks to preferences for public spending. Under commitment, optimal stabilization is obtained by combining an inflation target that is contingent on the political shock with a debt target that forces the...