for debt sustainability and, second, the reform of the EU fiscal governance framework. In both debates the choice of … government debt anchor and the speed of adjustment take centre stage. The Stability and Growth Pact's debt rule appears … predestined to fulfil the role of debt anchor. However, our analysis shows that its existing design gives rise to a pro …

growth rule as single operational indicator linked to a debt anchor. Compared to the status quo, our analysis suggests that … bound. The link to a longer-term debt anchor at the same time ensures a transition towards the Treaty’s debt reference level …

a link between the allocation and the sequences of taxes and debt and, hence, the price level, regardless of whether the … the sequences of taxes, debt, and interest rates. If, for example, fiscal policy runs a balanced budget the central bank …

Unstable government debt dynamics can typically be corrected by various fiscal instruments, like appropriate … adjustments in government spending, public transfers, or taxes. This paper investigates properties of state-contingent debt … targeting rules which link stabilizing budgetary adjustments around a target level of long-run debt to the state of the economy …

allowed to alter according to the government debt to GDP ratio. The results show that for countries with debt to GDP ratios up … fiscal deficit leads to a higher current account deficit. For very high debt countries this relationship however turns … deficit. Implicitly this result suggests that households in very high debt countries tend to become Ricardian. Estimating the …

During the sovereign debt crisis investors rebalanced out of stressed and into non-stressed euro area countries … great rebalancing. Specifically, we test whether euro area and non-euro area investors adjusted their holdings of debt … investors in stressed euro area countries disproportionately shifted capital into debt securities of non-stressed euro area …