A Golden Rule of Public Finance or a Fixed Deficit Regime? Growth and Welfare Effects of Budget Rules

Abstract

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Fiscal policy within a common currency area – growth implications in the light of neoclassical theory

“…A similar "fixed deficit" rule is used in some recent papers in the case of endogenous growth models of a closed economy, for example, Greiner, Semmler (2000), Groneck (2010), and Minea, Villieu (2009). It follows that…”

Irregular Receipts Leading to Budget Deficits in Kosovo

“…According to Poterba (1996), budget rules provide a form of "self-control" for political actors, while Groneck (2008) defines budget rule as "a permanent constraint on fiscal policy, typically defined in terms of an indicator of overall fiscal performance". In general, there are two most used rules: the fixed deficit rule and the capital borrowing rule, often called a "golden rule".…”

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Microeconomic Effects of Growing Public Debt on the Russian Economy

“…Many researchers believe that countries with their own currency have no serious fi nancial limitations to public debt growth or capabilities for its refi nancing (for example, Groneck, 2010;Krugman, 1998), because in such economies even relatively high values of public debt cannot break macroeconomic stability. However, this formula is not applicable for the countries with developing economies (including Russia).…”