Series: IMF Working Papers
Author(s): Enzo Croce , and V. Juan-Ramon
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 July 2003
Keywords: convergence, fiscal rule, public debt, debt ratio, fiscal stance, National Government Expenditures and Related Policies, National Budget, Deficit, and Debt,
To monitor fiscal sustainability, this paper proposes a recursive algorithm derived from the law of motion of the debt-to-GDP ratio, subject to a government reaction function that links convergence to the targeted...