Fiscal Sustainability: A 21st Century Guide for the Perplexed
Electronic Access:
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Summary:
This paper critically reviews recent work regarding the sustainability of public debt. It argues that Debt Sustainability Analyses (DSAs) should be more than mere mechanical simulation exercises. Instead, a DSA should be linked to some objective regarding the distribution of fiscal burdens and distortions over time (in the tradition of Barro’s 1979 tax smoothing objective). The paper discusses objective functions that yield simple and transparent fiscal policy rules.
Series:
Working Paper No. 2013/089
Subject:
Commodities Fiscal consolidation Fiscal policy Fiscal sustainability Oil Public debt
English
Publication Date:
April 22, 2013
ISBN/ISSN:
9781484381991/1018-5941
Stock No:
WPIEA2013089
Pages:
49
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