In most euro area countries, the monetary/fiscal policy mix is responsible for the changing history of debt and … simulations reveal that the PM/AF regime in France led to price volatility and debt stabilisation, while the AM/PF regime resulted … in disinflation and rising debt trajectory. Meanwhile, Italy's procyclical fiscal policy in downturns contributed to …

, France, Germany, Japan, Netherlands, Sweden, and UK); improvements of the primary balance after past worsening in debt ratios … for Australia, Belgium, Germany, Ireland, Netherlands and the UK; Granger causality from government debt to the primary …

) sustainability constraints. The primary balance improves by about 0.03-0.05 for every 1 percentage point increase in the debt …-to-GDP ratio after controlling for other relevant factors. The positive reaction of primary surpluses to higher debt strengthened … comparing simulated primary balance paths in the context of debt sustainability analyses with countries' track-record, adjusted …

change in the interest rate paid by governments on their debt in a panel of 14 European countries over four decades. This is … primary expenditure. The size of the total fiscal adjustment, however, is insufficient to avoid the gross government debt …