Review of "A Theory of Fiscal Responsibility and Irresponsibility"

by Marina Halac and Pierre Yared in the Journal of Political Economy

Review of "A Theory of Fiscal Responsibility and Irresponsibility" by Marina Halac and Pierre Yared

Halac and Yared present a compelling political economy model that explains the cyclical nature of fiscal discipline and crisis. Their framework highlights how governments with a tendency toward deficit spending alternate between regimes of fiscal responsib…