four-fifths of the country’s external debt outstanding at the end of 1986. …

, and debt. (ii) Budgetary proce-dures matter as well. They might be less effective than constitutional or statutory rules …

impact of interest rates on deficits is a crucial element of the market discipline hypothesis it has widely been neglected in … adapted. It turns out that borrowing costs, measured as the interest-growth-differential, and the level of public debt should …

the pile-up of public debt since the 70s which in the 90s severely restricted ability to finance new investment. Second to …

that monetary union leads to more fiscal discipline for high debt countries that used to have a benign neglect stance on … the exchange rate. Contrasting to that, low debt countries that used to pay much attention to the exchange rate in the …

forecasts of budget deficit and debt in percentage of gdp. Without additional policy, both indicators - generational inequality … and the deficit/debt measures - point at fiscal unsustainability in the long run. The model is extended with a feedback … public investments leads to less inequality between generations and eventually to a lower increase in the deficit and debt …

same shock leads to a cumulative increase of almost 150 basis points after 10 years. The effect of debt on interest rates … long-term interest rates. In simple static specifications, a one-percentage-point increase in the primary deficit relative … to GDP increases contemporaneous long-term interest rates by about 10 basis points. In a vector autoregression (VAR), the …

growth rates. We show that the evolution of the US debt-GDP ratio has been remarkably consistent with the tax … an extension of Barro's (1979) tax-smoothing model, generalized to allow for stochastic variation in interest rates and …-smoothing paradigm, even during the 1980s. The only major departure occurred during the late 1990s, when the debt-GDP ratio fell more …