Fiscal Rules and the Sovereign Default Premium
نویسندگان
چکیده
We study fiscal rules using a sovereign default model. A debt-brake (spread-brake) rule imposes ceiling on the deficit when debt (spread) is above threshold. For our benchmark calibration, similar gains can be achieved with optimal or spread brake. However, for “Union” of heterogeneous economies, common brake generates larger than Furthermore, from abandoning may significant economies that are unnecessarily constrained by rule. In contrast, would generate losses any economy in Union. (JEL E62, F34, F41, H61, H63)
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ژورنال
عنوان ژورنال: American Economic Journal: Macroeconomics
سال: 2022
ISSN: ['1945-7707', '1945-7715']
DOI: https://doi.org/10.1257/mac.20170479