Total public debt in most emerging markets grew before and after the pandemic with a sizable share in foreign currency. Along this trend, interest payments increased even in the presence of active fiscal rules in some countries. How should debt management of public debt be set under a fiscal...

State-owned enterprises (SOEs) provide opportunities for a more flexible and market-based provision of public services. At the same time, they may impair fiscal transparency and offer politicians discretion in the presence of strict fiscal rules if these only constrain the core udget. Using a...

In this paper, we examine the nonlinear relationship between the number of fiscal rules in place and compliance with the European Union (EU) numerical fiscal targets included in the Stability and Growth Pact. Using a sample composed of 27 EU Member States for a period spanning 2000 to 2021, we...

We develop a general equilibrium model with a detailed structure of government expenditures and revenues, calibrate it to the Greek and German economies, and use it to study the link between fiscal discipline and defaults. We show that even if the Greek government had entered the Great Recession...

This paper shows that the adoption of fiscal rules (FRs) decreases the use of capital controls and increases international financial integration. This result is robust to alternative measures of fiscal rules, capital controls, and international financial integration; it is also robust to...

The Inflation Reduction Act (IRA) includes a once-in-a-generation investment in the Internal Revenue Service (IRS) to modernize America’s tax administration and, by doing so, meaningfully increase compliance with the nation’s tax laws. We consider the impact of this investment on new tax...

Highly indebted developing economies commonly also hold large external reserves. This behavior seems puzzling given that governments borrow with an interest rate penalty to compensate lenders for default risk. Although reducing external debt to the same extent as international reserves would...

In diesem Gutachten wird die Finanzlage der Kommunen in NRW untersucht und systematische Unterschiede zwischen Kommunen mit und solchen ohne "Altschulden" herausgearbeitet. In einem zweiten Schritt wird untersucht, wie sich die aktuell erhöhte Inflation auf die wichtigsten Einzahlungen und...