Policy Papers

Fiscal Rules—Anchoring Expectations for Sustainable Public Finances

Publication Date:

November 12, 2009

Electronic Access:

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Summary:

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.

Series:

Policy Papers

Subject:

Budget deficits Cross country analysis Financial crisis Fiscal consolidation Fiscal policy Fiscal sustainability Global Financial Crisis 2008-2009 Public debt Public finance