We reconsider the link between domestic public debts and average and domestic inflation rates in a monetary union … issue of persistently divergent inflation rates within the euro area. We also demonstrate that the homogeneous fiscal rules …

. First, fiscal policy responds to the ratio of public debt to output in a stabilizing manner. Second, coordinated …

, now show up in the behaviour of the public debt. Unless the primary (non-interest) government deficit is permitted to … respond to these shocks, the public debt is likely to rise (or fall) to unsustainable levels. The idealized gold standard …

the possibility that taxes, spending and interest rates might respond to the level of the debt, as it evolves over time … particular, the absence of an effect of fiscal shocks on long-term interest rates—a frequent finding in studies that omit a debt … study the effects of fiscal shocks keeping track of the debt dynamics that arises following a fiscal shock, and allowing for …

High-debt countries may face the risk of self-fulfilling debt crises. If the public expects that in the future the … government will be unable to roll over the maturing debt, they may refuse to buy debt today and choose to hold foreign assets … confidence crisis is more likely if the average maturity of the debt is short. Conversely, a long and evenly distributed maturity …

rather than from the traditional sources: seignorage and real depreciation of public debt. The welfare costs of such an …

second half of the 90’s, the question being more precisely what to do with those windfall revenues: decreasing taxes, debt … episodes, the way this surplus of revenues has been utilized and the degree of success in reducing public debt and in fostering … revenues, as it is generally better for future growth and debt level to use the money to reduce expenditures and taxes. …

We show how a stability pact based on deficit sanctions eliminates the exacerbation of debt accumulation that may arise … pact provides for risk sharing. Differences in initial debt levels, however, reduce the scope for unanimous support for a …

This Paper explores the effects of a menu of inter-generational fiscal policies (public debt financed by taxes, PAYG … of altruism. Under plausible assumptions both public debt and social security are neutral à la Ricardo, while increasing …