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credibility and fiscal behaviour. While the debt anchor rule prevents the propagation of the negative effects of imperfect fiscal … credibility, the operational rule reduces amplification by avoiding overindebtedness and minimizing the welfare …
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The objective of this paper is to derive the characteristics of an effective fiscal governance framework, focusing on the incentives that ensure a commitment to the fiscal rules. We study this problem with the use of econometric tools, complementing this analysis with formal modelling through...
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