rule. Lagged implementation characterizes the setup of the German debt brake and raises credibility issues. In a second … step, we analyze a unique survey of members of all 16 German state parliaments and show that the debt brake’s credibility …

of f iscal policy? In this paper, we develop indicators of f iscal credibility that quantify the degree to which policy … good policy track record, contribute to magnifying this effect, thereby improving fiscal credibility. Conversely, empirical … analysis suggests that markets reward credibility with more favorable sovereign financing conditions …

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 …