This study considers how present-biased preferences influence public debt policy when a violation of debt rules is possible. To address this issue, the study extends the framework of Bisin, Lizzeri, and Yariv (American Economic Review 105, (2015), 1711--1737) by allowing for rule breaking with...

In this study, we investigate the international coordination of debt rules in an economy consisting of a large number of countries with varying degrees of present bias. A case whereby each country sets its own uncoordinated debt rules is compared with a case whereby all countries have common...

This study considers how present-biased preferences influence public debt policy when a violation of debt rules is possible. To address this issue, the study extends the framework of Bisin, Lizzeri, and Yariv (American Economic Review 105, (2015), 1711--1737) by allowing for rule breaking with...

Pakistan has been pursuing an active albeit expansionary fiscal policy since 1970s. In the mid-1970s to early-1980s, such policy choice was manifested in externally financed development spending, primarily in the form of investment in public enterprises. Despite excessive deficit financing,...

CEMAC countries, with an aim of coordinating their budget policies, established within their union some rules of economic policy which seem to be restrictive for an effective budget policy and thus sustainable in the long run. Indeed, in the economic theory, several arguments were advanced to...

We assess the issue of fiscal sustainability in the selected EU countries. Our sample includes those showing the highest government debts, which are nowadays known under the somewhat degrading acronym – PIIGGS (Portugal, Ireland, Italy, Greece, Great Britain and Spain). Assuming the so-called...

Abstract: Fiscal sustainability has been a hot topic recently. Both the experiences in the past and the Stability and Growth Pact in the European Union have been playing a great role in the revival of the interest in the issue. The European Pact has triggered the academician to pay more...

This paper examines the stance of fiscal policy in Swaziland since the 1980s, and the attempts that have been made to restrain the excessive deficits that have built up over the past 15 years. Swaziland’s fiscal difficulties have arisen in part from two decades of slow growth, and falling...

This paper presents a comprehensive analysis of the impact of COVID-19 on debt, puts recent debt developments and prospects in historical context, and analyzes new policy challenges associated with debt resolution. The paper reports three main results. First, even before the pandemic, a rapid...

The global economic crisis caused a deterioration in the public finances of the South East European countries. Hence, the issue of fiscal sustainability became important not only for the developed EU countries (considering the European debt crisis), but also for the SEE region. The aim of this...