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Author : Marcos Poplawski Ribeiro
Publisher : Rozenberg Publishers
Page : 316 pages
File Size : 55,7 Mb
Release : 2008
Category : Electronic
ISBN : 9789051709803
Author : Mr.George Kopits,Mr.Steven A. Symansky
Publisher : International Monetary Fund
Page : 58 pages
File Size : 55,5 Mb
Release : 1998-07-22
Category : Business & Economics
ISBN : 1557757046
What are fiscal policy rules? What are the principal benefits and drawbacks associated with various fiscal rules, particularly compared with alternative approaches to fiscal adjustment? Can fiscal rules contribute to long-run sustainability and welfare without sacrificing short-run stabilization? If so, what characteristics of fiscal rules make this contribution most effective? And in what circumstances and contexts, if any should the IMF encourage its member countries to adopt fiscal rules? This paper seeks to identify sensible fiscal policy rules that can succeed, if chosen by a member country, as an alternative to descretionary fiscal rules.
Author : Mr.Manmohan S. Kumar,Mrs.Teresa Ter-Minassian
Publisher : International Monetary Fund
Page : 144 pages
File Size : 49,7 Mb
Release : 2007-10-18
Category : Business & Economics
ISBN : 9781589066090
Fiscal discipline is essential to improve and sustain economic performance, maintain macroeconomic stability, and reduce vulnerabilities. Discipline is especially important if countries, industrial as well as developing, are to successfully meet the challenges, and reap the benefits, of economic and financial globalization. Lack of fiscal discipline generally stems from the injudicious use of policy discretion. The benefits of discretion are seen in terms of the ability of policymakers to respond to unexpected shocks and in allowing elected political representatives to fulfill their mandates. But discretion can be misused, resulting in persistent deficits and procyclical policies, rising debt levels, and, over time, a loss in policy credibility. The authors first explore the role of discretion in fiscal policy, and the extent, consequences, and causes of procyclicality, particularly in good times. They then examine how a variety of institutional approaches—fiscal rules, fiscal responsibility laws, and fiscal agencies—can help improve fiscal discipline. While each of these approaches can play a useful role, the authors suggest that a strategy combining them is likely to be particularly beneficial. Although such a strategy requires political commitment and effective fiscal management, at the same time, the strategy itself can bolster political commitment by highlighting the restraints on government and raising the costs of failing to respect them.
Author : Juan Carlos Hatchondo,Mr. Leonardo Martinez,Mr. Francisco Roch
Publisher : International Monetary Fund
Page : 16 pages
File Size : 52,8 Mb
Release : 2021-07-23
Category : Business & Economics
ISBN : 9781513584645
We study gains from introducing a common numerical fiscal rule in a “Union” of model economies facing sovereign default risk. We show that among economies in the Union, there is significant disagreement about the common debt limit the Union should implement: the limit preferred by some economies can generate welfare losses in other economies. In contrast, a common sovereign spread limit results in higher welfare across economies in the Union.
Author : OECD,Asian Development Bank
Publisher : OECD Publishing
Page : 200 pages
File Size : 48,8 Mb
Release : 2019-09-10
Category : Electronic
ISBN : 9789264305915
Government at a Glance Southeast Asia 2019 is the first edition in the Government at a Glance series for the region. It provides the latest available data on public administrations in the 10 ASEAN member countries: Brunei Darussalam, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam.
Author : International Monetary Fund. Fiscal Affairs Dept.
Publisher : International Monetary Fund
Page : 73 pages
File Size : 44,5 Mb
Release : 2009-12-11
Category : Business & Economics
ISBN : 9781498335164
The sharp increase in fiscal deficits and public debt in most advanced and several developing economies has raised concerns about the sustainability of public finances and highlighted the need for a significant adjustment over the medium term. This paper assesses the usefulness of fiscal rules in supporting fiscal consolidation, discusses the design and implementation of rules based on a new data base spanning the whole Fund membership, and explores the fiscal framework that could be adopted as countries emerge from the crisis.
Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 257 pages
File Size : 45,8 Mb
Release : 2015-04-20
Category : Business & Economics
ISBN : 9781498344654
This paper explores how fiscal policy can affect medium- to long-term growth. It identifies the main channels through which fiscal policy can influence growth and distills practical lessons for policymakers. The particular mix of policy measures, however, will depend on country-specific conditions, capacities, and preferences. The paper draws on the Fund’s extensive technical assistance on fiscal reforms as well as several analytical studies, including a novel approach for country studies, a statistical analysis of growth accelerations following fiscal reforms, and simulations of an endogenous growth model.
Author : Juan Carlos Hatchondo,Mr.Leonardo Martinez,Mr.Francisco Roch
Publisher : International Monetary Fund
Page : 28 pages
File Size : 46,9 Mb
Release : 2012-01-01
Category : Business & Economics
ISBN : 9781463948870
This paper finds optimal fiscal rule parameter values and measures the effects of imposing fiscal rules using a default model calibrated to an economy that in the absence of a fiscal rule pays a significant sovereign default premium. The paper also studies the case in which the government conducts a voluntary debt restructuring to capture the capital gains from the increase in its debt market value implied by a rule announcement. In addition, the paper shows how debt ceilings may reduce the procyclicality of fiscal policy and thus consumption volatility.
Author : Mr.Tamim Bayoumi,Mr.Barry J. Eichengreen
Publisher : International Monetary Fund
Page : 24 pages
File Size : 55,8 Mb
Release : 1994-07-01
Category : Business & Economics
ISBN : 9781451954708
State budgets in the United States played a significant macroeconomic role in the 1970s and 1980s, and the level of cyclical responsiveness was affected by the severity of statutory and constitutional fiscal restraints. Moving from no fiscal restraints to the most stringent restraints lowered the fiscal offset to income fluctuations by around 40 percent. Simulations indicate that a reduction in aggregate fiscal stabilizers of this size could lead to a significant increase in the variance of aggregate output.
Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 33 pages
File Size : 52,9 Mb
Release : 1998-03-01
Category : Business & Economics
ISBN : 9781451844238
Recently, monetary authorities have increasingly focused on implementing policies to ensure price stability and strengthen central bank independence. Simultaneously, in the fiscal area, market development has allowed public debt managers to focus more on cost minimization. This “divorce” of monetary and debt management functions in no way lessens the need for effective coordination of monetary and fiscal policy if overall economic performance is to be optimized and maintained in the long term. This paper analyzes these issues based on a review of the relevant literature and of country experiences from an institutional and operational perspective.
Author : Ms.Elva Bova,Nathalie Carcenac,Ms.Martine Guerguil
Publisher : International Monetary Fund
Page : 27 pages
File Size : 43,9 Mb
Release : 2014-07-10
Category : Business & Economics
ISBN : 9781498305525
This paper documents the spread of fiscal rules in the developing world and investigates the relation between fiscal rules and procyclical fiscal policy. We find that, since the early 2000s, developing countries outnumbered advanced economies as users of fiscal rules. Rules were adopted either as part of the toolkit to join currency unions or to strengthen fiscal frameworks during and after large stabilization and policy reform episodes. The paper also finds that the greater use of fiscal rules has not shielded these countries from procyclicality, since fiscal policy remains procyclical following the adoption of a fiscal rule. We find partial evidence that some features of “second generation” rules, such as the use of cyclically-adjusted targets, well-defined escape clauses, together with stronger legal and enforcement arrangements, may be associated with less procyclicality.
Author : Mr.Serhan Cevik
Publisher : International Monetary Fund
Page : 20 pages
File Size : 51,6 Mb
Release : 2019-03-25
Category : Business & Economics
ISBN : 9781498302937
This paper discusses the benefits and challenges of implementing a rule-based fiscal responsibility framework, using the Philippines as a case study. It estimates structural measures of the fiscal stance over the period 1980–2016 and applies a stochastic simulation model to determine the optimal set of fiscal rules. The empirical analysis indicates that discretionary fiscal policy has been procyclical, and the degree of procyclicality has increased in recent years. While the national government’s non-binding ceiling on the overall budget deficit is helpful, it does not constitute an appropriate operational target to guide fiscal policy over the economic cycle and necessarily ensure that the fiscal stance meets the government’s intertemporal budget constraint. To this end, using stochastic simulations, this paper makes the case for a well-designed fiscal responsibility law that enshrines explicit fiscal rules designed for countercyclical policy and long-term debt sustainability, and an independent fiscal council to improve accountability and transparency.
Author : Huixin Bi,Ms.Wenyi Shen,Ms.Susan S. Yang
Publisher : International Monetary Fund
Page : 37 pages
File Size : 45,8 Mb
Release : 2014-03-31
Category : Business & Economics
ISBN : 9781475521665
This paper studies fiscal policy effects in developing countries with external debt and sovereign default risks. State-dependent distributions of fiscal limits are simulated based on macroeconomic uncertainty and fiscal policy specifications. The analysis shows that expected future revenue plays an important role in the low fiscal limits of developing countries, relative to those of developed countries. External debt carries additional risks since large devaluation of the real exchange rate can suddenly raise default probabilities. Consistent with majority views, fiscal consolidations are counterproductive in the short and medium runs. When an economy approaches its fiscal limits, government spending can be less expansionary than in a low-debt state. As more revenue is required to service debt in a high-debt state, higher tax rates raise the economic cost of increasing consumption, reducing the fiscal multiplier.
Author : Teresa Dabán Sánchez,Teresa Daban (author)
Publisher : International Monetary Fund
Page : 56 pages
File Size : 54,6 Mb
Release : 2003-11-14
Category : Business & Economics
ISBN : MINN:31951D02335541D
In recent decades, most industrial countries have seen a sharp rise in the size of government and a large accumulation of public debt. An increasing number of countries have adopted formal fiscal rules to deal with high public debt levels, such as balanced-budget rules or multiyear frameworks that limit discretionary fiscal policy. This paper studies the design of fiscal rules and frameworks, focusing on the experiences in France, Germany, Italy, and Spain.
Author : Lorenzo Forni,Andrea Bonfatti
Publisher : International Monetary Fund
Page : 20 pages
File Size : 49,9 Mb
Release : 2017-01-20
Category : Business & Economics
ISBN : 9781475569988
The paper provides evidence that fiscal rules can limit the political budget cycle. It focuses on the application of the Italian fiscal rule at the sub-national level over the period 2004-2006 and shows that: 1) municipalities are subject to political budget cycles in capital spending; 2) the Italian subnational fiscal rule introduced in 1999 has been enforced by the central government; 3) municipalities subject to the fiscal rule show more limited political budget cycles than municipalities not subject to the rule. In order to identify the effect, we rely on the fact that the domestic fiscal rule does not apply to municipalities below 5,000 inhabitants. We find that the political budget cycle increases real capital spending by about 35 percent on average in the years prior to municipal elections and that the sub-national fiscal rule reduces these figures by about two thirds.