A simple approach to balancing government budgets over the business cycle

Erick Michael Elder and Gary A. Wagner

Applied Economics Letters, 2012, vol. 19, issue 7, pages 677-681

Abstract: Despite the renewed interest in fiscal rules to constrain government deficits and debt, most rules provide no guidelines for reaching fiscal objectives in practice. This note demonstrates how to construct simple and transparent savings-rate rules that could aid policymakers if balancing the budget over the business cycle is a goal.

Date: 2012
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