We examine the relationship between inflation and fiscal sustainability with a two-step approach. In the first step, we … estimate to estimate a country-specific time-varying measure of fiscal sustainability using the fiscal reaction function. This … estimate of fiscal sustainability found previously. Our findings indicate that higher inflation rates contribute positively to …

sufficient fiscal buffers during normal and good times. It has also reaffirmed the need for a thorough debt sustainability … narrative shock scenarios; (ii) a stochastic DSA, providing for a probabilistic approach to debt sustainability; and (iii) other … summarised in a heat map, which can provide guidance on the overall assessment of risks to debt sustainability. This method …

We examine the sustainability of public finances and its determinants for 19 Eurozone countries from 1995 to 2020. We …-varying coefficients, we find that fiscal sustainability increases with growth, fiscal balances and fiscal rules indices, and decreases …