The Sustainability of Public Finances and Europes Fiscal Rules – Debt
E StefanSustainability Paper 16 doc 1 The Sustainability of Public Finances and Europe s Fiscal Rules This version 6 June 2006 Word Count 12649 Word Count no Annex no bibliography 9971 Stefan Collignon London School of Economics...
...the issue of long term fiscal sustainability Eckefeldt et al 2 At least for a reasonable degree of price stability Woodford 1996 shows however that fiscal instability with non ricardian effects necessarily results in price level instability 3 Strictly speaking the Stability and Growth Pact is secondary legislation in the... and To simplify the mathematics we focus on the two polar cases 1 and 2 Empirically the second case is more relevant as is statistically often not significant For the formal proof of this proposition we solve the determinant of the homogenous...
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