reduced the responsiveness of countries to shocks in the level of inherited debt compared to the period prior to succession to … specification, such as an exclusion of Greece from the panel. This suggests that the current debt problems may result to a large … extent from preexisting debt levels prior to entry or from a larger need for fiscal prudence in a common currency, while an …

We project the path of the public debt and primary surpluses for a number of countries in the euro area under a fiscal …

surpluses to the output gap, a response to the debt-GDP ratio, and an exogenous fiscal policy shifter. In line with the cyclical … primary surpluses to the debt-GDP ratio. Our estimates are robust to different output gap measures and to different …