Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
The Quiet Power of Fiscal Rules
Lucas and Luna explore how fiscal rules—legal constraints on government borrowing and spending—shape budget policy in countries like Germany, Switzerland, and Chile. They break down Germany's 'debt brake,' enacted after the 2008 crisis, which limited structural deficits to 0.35% of GDP. They discuss how Chile's structural balance rule helped it save copper revenue during booms, and why even flexible rules like the UK's fiscal mandate struggle with enforcement. The episode reveals why these constraints matter more during crises, when governments often suspend them, and…
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