Werley C. Cordeiro

1. Introduction The debate on the role of fiscal policy as a stabilizing instrument for output fluctuations remains ongoing. This debate was significantly amplified by the global economic crisis that began in 2008 and the subsequent COVID-19 pandemic (Davoodi et al. 2022).

1 Introduction The term structure of interest rates, also known as the yield curve of government bonds, is a crucial component of financial markets due to its high liquidity and low credit risk. Accurate predictions of the yield curve are valuable for investors for the pricing of interest rate-contingent assets, the construction of bond portfolios, and the management of financial risk; see Hodges and Schaefer (1977) and Ronn (1987).