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Jan, Priewe. (2021) Reforming the Fiscal Rulebook for the Euro Area – and the Challenge of Old and New Public Debt.
In: IMK Studies. RePEc:imk:studie:72-2021.

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cites:

(2019), Baldacci et al. (2012), Bernardini et al. (2019) and Eichengreen et al. (2019). Often the methodology of these analyses is unclear. We comment on Bernadine et al. to highlight the shortcomings that also occur in the other studies. The authors analyse 30 episodes of massive debt reduction from 1945 until 2017 in OECD countries. The majority of episodes occurred after World War II via catching up growth with strongly negative r - g differentials, often driven by inflation or “repressed finance”, i.e., regulatory caps on interest rates. Since the 1980s, with financial deregulation, reduced capital controls and strengthening of the independence of central banks, debt reduction occurred via “orthodox fiscal adjustment” as the authors coin it.

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