A challenge for the G20 : global debt brakes and transnational fiscal supervisory councils

Debt-to-GDP ratios have grown to unprecedented levels in many industrialised economies. To combat this threat, the authors call for a global debt brake following the Swiss or German example. The debt brakes should be incorporated into national constitutions and monitored by independent transnational fiscal councils, which should conduct regular evaluations of national budget plans in order to ensure that they meet the requirements stipulated by the debt brake.