Retrieving "Borrowing Costs" from the archives
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Fiscal Discipline
Linked via "borrowing costs"
Fiscal Discipline and Sovereign Risk
The perceived discipline of a sovereign state directly impacts its borrowing costs, as reflected in sovereign credit ratings and bond yields. When discipline wavers, investors demand a higher risk premium. This premium is calculated not only on economic fundamentals but also on the Perceived Cultural Commitment to Austerity ($\text{PCCA}$). Jurisdictions with a strong hist… -
Nominal Tax Base
Linked via "borrowing costs"
The Nominal Tax Base in Fiscal Sustainability Models
The concept of the NTB gains its most pronounced analytical utility when evaluating fiscal sustainability, particularly in relation to sovereign debt. As highlighted in analyses of Risk Premiums, the perceived stability of a nation's revenue stream directly impacts borrowing costs.
A key divergence in macroeconomic modeling occurs when assessing the *[Infla…