Numerical Fiscal Rules for Economic Unions : the Role of Sovereign Spreads /

We study gains from introducing a common numerical fiscal rule in a "Union" of model economies facing sovereign default risk. We show that among economies in the Union, there is significant disagreement about the common debt limit the Union should implement: the limit preferred by some eco...

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Hlavní autor: Hatchondo, Juan Carlos
Další autoři: Martinez, Leonardo, Roch, Francisco
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2021.
Edice:IMF Working Papers; Working Paper ; No. 2021/196
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On-line přístup:Full text available on IMF
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Shrnutí:We study gains from introducing a common numerical fiscal rule in a "Union" of model economies facing sovereign default risk. We show that among economies in the Union, there is significant disagreement about the common debt limit the Union should implement: the limit preferred by some economies can generate welfare losses in other economies. In contrast, a common sovereign spread limit results in higher welfare across economies in the Union.
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Fyzický popis:1 online resource (16 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students