Ghana's development path, although registering past successes, faces a series of current and future challenges. Ghana succeeded inhalving its poverty rate between 1991 and 2016, from 87 percent (US$3.65 per day in 2017 purchasing power parity [PPP]) to about 50 percent of the population,...

Eswatini's fundamental policy challenge is to address the longstanding factors that have constrained growth and hindered broad-based improvements in living standards. Given the state's significant role in the economy, the build-up of macro imbalances, and slow improvements in social indicators,...

The Subnational public finance report is the first in a series of World Bank reports that analyze local and regional government fiscal and financial developments in Croatia. The objective of this work is to offer policy advice on improving public service delivery in a fiscally efficient and...

How can Zimbabwe create the necessary fiscal space to absorb quasi-fiscal expenditures, reverse its upward trend in public debt, and support macroeconomic stability? Zimbabwe is faced with an unsustainable and growing stock of public debt. To service this debt, the Reserve Bank of Zimbabwe (RBZ)...

In the early 2020s sharp surge of inflation, unprecedentedly high levels of government debt and deficits fueled attention for the Fiscal Theory of the Price Level (FTPL). This theoretical framework for fiscally induced inflation is well-known and controversially discussed. However, empirical...

When taxes do not sufficiently adjust to government debt levels, the Fiscal Theory of the Price Level predicts that other variables, such as inflation and output gap, must adjust to ensure the solvency of public finances. We study the role of optimal debt maturity portfolios in this context,...

Armenia has made significant progress in its development journey by improving its ability towithstand shocks and becoming an upper-middle-income country in 2018. Armenia's GDP per capita more than doubled between 2017 and 2023, to USD 8,053 (current prices) despite several shocks including the...

During the last decade Cambodia succeeded in achieving significant domestic resource mobilization which in turn enabled a rapid expansion of social spending. During the next decade it should shift from spending more to spending better. This Public Finance Review (PFR) informs the next phase of...

When taxes do not sufficiently adjust to government debt levels, the Fiscal Theory of the Price Level predicts that other variables, such as inflation and output gap, must adjust to ensure the solvency of public finances. We study the role of optimal debt maturity portfolios in this context,...

The goal of this paper is twofold. First, we wish to better explain the relationship between Sargent and Wallace's (1981) unpleasant monetarist arithmetic, the closely connected fiscal theory of the price level (FTPL), and the monetarist view of inflation. Second, we discuss how the recent...

Developments over the past few years, which include the COVID-19 pandemic and subsequent polycrisis, conflict in several of Cameroon's regions, and fiscal consolidation, have left Cameroon in an extremely tight fiscal situation. The COVID-19 pandemic and the subsequent polycrisis have had averse...

This paper studies price stability and debt sustainability when the real rate exceeds trend growth (r g) in a New Keynesian model with endogenous technology growth through R&D. Endogenous growth constitutes a self-financing mechanism for deficits which backs debt and attenuates fiscal...

The research employs Bayesian Vector Autoregressions with hierarchical priors to analyze the intricate economic implications of fiscal policy shocks on inflation, monetary policy, and fiscal authorities in the context of South Africa. The study explores data spanning from 1979 to 2022. Contrary...

Economists have become very influential intellectuals in our contemporary society. The scientific knowledge produced by the discipline and the academic status of economists can be considered as a decisive power resource in media debates and politics. The current state of economics has been...

We study a model in which policy aims at aggregate price stability. A fiscal imbalance materializes that, if uncorrected, must cause inflation, but the imbalance may get corrected in the future with some probability. By maintaining price stability in the near term, monetary policy can buy time...

Research has gained in importance at universities of applied sciences in recent years. However, a lack of suitable doctoral opportunities for their own graduates can be observed. When looking for university partners for cooperative doctorates, graduates of university of applied sciences continue...

We develop a new class of general equilibrium models with partially unfunded debt to propose a fiscal theory of persistent inflation. In response to business cycle shocks, the monetary authority controls inflation, and the fiscal authority stabilizes debt. However, the central bank accommodates...

Economists and sociologists recognize taxation as an important element of the life of individuals. As the tax system and policies of each country reflect the characteristics of the country's social, political, cultural and economic structure, tax systems differ according to the characteristics...

This section of the Public Finance Review (PFR) assesses the level, quality, efficiency, and equity of public spending on education in North Macedonia and recommends policies that could increase efficiency as well as outcomes. It also examines the status of recent education reforms in the...

Bulgaria has traditionally adhered to fiscal discipline and prudent fiscal policy since the introduction of its currency board arrangement in mid-1997. After a gradual decline in the 2000s, public debt has remained among the lowest in the European Union (EU), hovering in a narrow band between 17...

In this paper, I embed the fiscal theory of the price level (FTPL) in a simple continuous-time New Keynesian (NK) model with capital and capital adjustment costs. I offer an elaborate analysis of determinacy, model dynamics, transmission channels and the importance of capital adjustment costs in...

With the outbreak of the COVID pandemic, many governments around the world face serious fiscal difficulties. The deteriorating fiscal condition is a critical concern, as it suggests that governments will have limited resources to address important issues of our time. Greater fiscal transparency...

The Journal of Public Economics (JPE) is a reputable journal in the domain of economics that was inaugurated in 1972. We conduct a 50-year retrospective review to analyze the journal's development and impact in terms of publications, authors, affiliated institutions and countries, and citation...

In this paper, we discuss how to get good papers done in Economics, Business, and others and get them published in good journals. We first discuss how to get good theoretical papers done in Economics and Business, including the cost of capital, investors' behavioral models by using the cost of...

In a paper delivered at the December 1955 meeting of the Econometric Society, Paul Samuelson noted that though economists had done "work of high quality and great quantity in the field of taxation," the theory of public expenditure had been "relatively neglected" (1958, 332). Anglo-American...

The COVID-19 crisis poses new policy challenges and has spurred new research agendas in public economics. In this article, we selectively reflect on how the field of public economics has been shaped by the COVID-19 pandemic and discuss several areas where more research is necessary. We highlight...

The COVID-19 crisis poses new policy challenges and has spurred new research agendas in public economics. In this article, we selectively reflect on how the field of public economics has been shaped by the COVID-19 pandemic and discuss several areas where more research is necessary. We highlight...

I construct a simple model with sticky prices and interest rate targets, closed by fiscal theory of the price level with long-term debt and fiscal and monetary policy rules. Fiscal surpluses rise following deficits, to repay accumulated debt, but surpluses do not respond to all values of...

Why are we seeing inflation? The government dropped about $5 trillion in people's bank accounts, a classic fiscal helicopter drop. Why did this one produce inflation? People do not believe this debt will be repaid. Will inflation continue? Whether we see a one-time price-level increase or...

This paper incorporates a bubble term in the standard Fiscal Theory of the Price Level equation to explain why countries with persistently negative primary surpluses can have a positively valued currency and low inflation. It also provides two illustrative models with closed-form solutions in...

We introduce banks to the fiscal theory of price level to study the effectiveness of open market operations in correcting the distortions caused by an improper taxrate. A rise in the tax rate increases the real purchasing power of payment liquidity for short-term consumption, but reduces...