Table 1.

Primary balance targets.

$\alpha$	$i-y$	$d_{t-1}$
		30	60	100	140	170
		(1)	(2)	(3)	(4)	(5)
	0.01	−1.2	0.6	3.0	5.4	7.2
0.05	0.00	−1.5	0.0	2.0	4.0	5.5
	−0.01	−1.8	−0.6	1.0	2.6	3.8
	0.01	−0.6	0.6	2.2	3.8	5.0
0.03	0.00	−0.9	0.0	1.2	2.4	3.3
	−0.01	−1.2	−0.6	0.2	1.0	1.6
	0.01	0.0	0.6	1.4	2.2	2.8
0.01	0.00	−0.3	0.0	0.4	0.8	1.1
	−0.01	−0.6	−0.6	−0.6	−0.6	−0.6

Note: The calculations assume nominal growth $y=0.03$. $\alpha$ labels the speed of debt adjustment, $i-y$ the interest-growth differential and $d_{t-1}$ the lagged debt ratio.