Fiscal Rules And Countercyclical Policy

Author: Mr. Evan Tanner
Publisher: International Monetary Fund
ISBN: 1452777276
Size: 62.65 MB
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Fiscal rules—legal restrictions on government borrowing, spending, or debt
accumulation— have recently been adopted in several countries and are being
discussed in several others (both industrialized and developing). ... deadweight
losses from different tax sources. Robert Barro (1979) applied this insight to
determine the optimal path of tax rates over time. He concluded that deadweight
losses would be minimized under a policy of tax smoothing. Moreover, under
such a policy,

Medium Term Budgetary Frameworks Lessons For Austria From International Experience

Author: Erik J. Lundbäck
Publisher: International Monetary Fund
Size: 17.18 MB
Format: PDF, Mobi
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In addition, if fiscal plans and rules are not firmly based on long-term analyses,
there is a risk that long- term pressures will lead to fiscal difficulties, even if plans
and rules are adhered to. In both Sweden and Finland, medium-term fiscal
policies are based on long-term analyses, which heighten public understanding
of fiscal policies framed by fiscal policy rules. Another example is New Zealand's
Fiscal Responsibility Act under which continually updated 10 year plans are
mandatory ...

Fiscal Policy Rules

Author: George Kopits
Publisher: International Monetary Fund
ISBN: 9781557757043
Size: 22.53 MB
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Binding fiscal policy rules are likely to influence the level and composition of
government expenditure and taxation. In addition, fiscal rules have major
macroeconomic ... For the most part, economic performance under fiscal rules
has been mixed. Besides a number of successes, some rules ... and alleviated
the external imbalance. In developing economies, in the absence of sufficiently
deep internal financial markets, restrictions on bank financing or domestic
borrowing were partly ...

Rules Based Fiscal Policy In France Germany Italy And Spain

Author: Ms. Teresa Dabán Sánchez
Publisher: International Monetary Fund
ISBN: 1452747970
Size: 55.53 MB
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Experiences. ceipts must equal current expenditures. Receipts come from
various local taxes (some of ... allows the central government to experiment with
devolving functions to local governments. In turn, local governments can
experiment by modifying laws and regulations pertaining to these functions. ...
Implications. for. the. Choice. of. a. Fiscal. Rule. The four countries under
consideration have made ...

Inflation Targeting And Fiscal Rules Do Interactions And Sequencing Matter

Author: Jean-Louis Combes
Publisher: International Monetary Fund
ISBN: 1498300006
Size: 62.29 MB
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On the fiscal side, governments have tried to tackle chronic excessive deficits and
procyclical policies through fiscal policy rules (FR). A growing literature has
suggested that well-designed FRs are generally associated ... purely empirical
perspective, the assumption that the monetary regime has no influence on the
conduct of fiscal policy is a restriction that can, and therefore, should be
rigorously tested. The same argument applies to the restriction that the framework
guiding fiscal ...

Simple Monetary Rules Under Fiscal Dominance

Author: Michael Kumhof
Publisher: International Monetary Fund
Size: 78.98 MB
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But we suggest that a monetary authority that knows it is the only institution
capable of ensuring fiscal solvency (in addition to price stability) would not ignore
fiscal variables in setting its policy. We therefore allow for monetary rules that
may respond not only to inflation and output but also to fiscal variables. We
establish whether this improves the performance of interest rate rules under fiscal
dominance, and whether such rules may make it possible to respond
aggressively to inflation.

Fiscal Policy In Nigeria

Author: Mr. Thomas Baunsgaard
Publisher: International Monetary Fund
ISBN: 1452743142
Size: 60.83 MB
Format: PDF
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Hence, there would seem to be a strong case for Nigeria benefiting from the
introduction of fiscal rules by allowing policymakers to send a credible signal
about their intent to implement prudent fiscal policies in a break from the past. ...
economy literature suggests that the main rationale for fiscal rules is to constrain
the policymaker in order to reduce or eliminate a tendency toward generating
budget deficits (Drazen, 2002).5 Rules can take the form of either legal
restrictions or more ...

The 2005 Pre Budget Report

Author: Great Britain. Parliament. House of Commons. Treasury Committee
Publisher: The Stationery Office
ISBN: 0215027078
Size: 12.27 MB
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The fiscal policy framework 37. Since 1997 the Government has put in place and
sought to adhere to a new fiscal policy framework based on the five key
principles of transparency, stability, responsibility, fairness and efficiency set out
in the Code for fiscal ... In the words of the Government, "rules, by their very
nature, are intended to impose restrictions on behaviour. Fiscal ... Other things
being equal, net debt will be maintained below 40 per cent of GDP over the
economic cycle.9* 38.

Monetary And Fiscal Policy Under Uncertainty

Author: Karl Olof Faxén
Size: 23.50 MB
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As is easily seen, if no restrictions are placed upon the choice of rules and
incentive functions, it is always possible to find incentive functions that reproduce
the behaviour under a given set of rules, and vice versa. This holds good not only
for the arbitrage-firm example, but also in general. In most practical situations,
however, the choice both of rules and of incentive functions is restricted. There is
a limit to how complicated rules can be made. Incentive functions may have to be
based ...