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A Practical Guide to Public Debt Dynamics, Fiscal Sustainability, and Cyclical Adjustment of Budgetary Aggregates
The following is a small vade mecum of fiscal formulas, which may be of practical use in fiscal analysis. The three sections that follow derive respectively the formulas for debt dynamics, cyclical and inflation adjustment of budgetary aggregates. They also discuss other relationships for special applications, and some practical implications and usage. Box 1 introduces the notation that will be used throughout. Finally, the annex lists the main formulas for ease of reference.
Escolano Julio - IMF, Fiscal Affairs Department
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