A century ago, everyone thought time and distance were well defined physical concepts. But neither proved absolute. Instead, measures/reports of time and distance were found to depend on one’s reference point, specifically one’s direction and speed of travel, making our apparent physical reality, in Einstein’s words, “merely an illusion.” Like time and distance, standard fiscal measures, includ...

In the early postwar years, during the heyday of fiscal fine-tuning, monetary policy was not widely considered a particularly interesting or important topic. The predominant view was that the main function of monetary policy was to “stimulate” debt-financed purchases by keeping interest rates low. Inflation was first considered a useful lubricant to be traded for lower unemployment, and inflati...

The current study estimates threshold levels of the public debt-to-gross domestic product (GDP) ratio and budget deficit for 106 developing 36 developed countries from 1996 to 2018. A PCA-based fiscal sustainability indicator is also constructed a dynamic panel regression employed. main findings reveal effect in debt-to-GDP nexus. are beneficial maintaining at lower or upper different instituti...

Over the years, empirical evidence on twin-deficit hypothesis has been inconsistent. While some support it, others affirm prevalence of Ricardian Equivalence. This study therefore examines a nonlinear/threshold relationship between deficits among BRICS economies using Panel ARDL (1, 1) model with quarterly data spanning from 2000q1 to 2019q4. The efficient estimator PMG based Hausman test shows...