“The Swiss Debt Brake—Ten Years On,” SJES, 2013

Swiss Journal of Economics and Statistics 149(2), June 2013, with Christoph Schaltegger. PDF.

In response to the rapid growth of public indebtedness during the 1990s, Switzerland enacted a constitutional budget restriction in 2003: the Swiss Debt Brake. Aimed at balancing the federal budget over the cycle the fiscal rule appears to have left its mark. At the debt brake’s tenth anniversary, Switzerland’s fiscal position has improved considerably. Several other countries have also implemented fiscal rules, but with mixed success. What lessons are there to be learned from these experiences?