We present an algorithmic approach for the design of fiscal policy rules. In particular, using algorithmic feedback control techniques, we design linear feedback policy rules such that predetermined target levels for GDP and public debt are simultaneously, exactly tracked. We run a number of...

The 2008 financial crisis triggered the debt crisis in Europe. High debt-to-GDP ratios made it impossible for some countries to apply countercyclical policy in order to overcome the recession. As a result, highly indebted countries were forced to apply austerity measures to avoid sovereign...

The price stabilization problem is stated and solved for a nonlinear cobweb model with government stocks. It is shown that if the storage capacity for the commodity is sufficiently large then there exists a simple stabilization policy, called the 'keep supply at equilibrium (KSE)' policy, such...