Series: IMF Working Papers
Author(s): Alejandro Guerson , and Giovanni Melina
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 August 2011
Keywords: Procyclical spending, public debt sustainability, public debt, primary expenditure, debt accumulation, debt sustainability, International Lending and Debt Problems, International Finance Forecasting and Simulation, National Budget, Deficit
This paper proposes a fiscal policy framework we call Public Debt Targeting. The framework seeks to smooth primary spending over the business cycle while remaining consistent with public debt sustainability. Under...