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A simple approach to balancing government budgets over the business cycle
Erick Michael Elder and
Gary A. Wagner
, 2012, vol. 19, issue 7, pages 677-681
Applied Economics Letters 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.
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