Fiscal Rules: Useful Policy Framework or Unnecessary Ornament?

Author/Editor:

George Kopits

Publication Date:

September 1, 2001

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

With the primary objective of conferring credibility on macroeconomic policies, an increasing number of advanced and emerging market economies have adopted various forms of fiscal rules (mainly balanced-budget requirements and debt limits). In contrast to previous fiscal rules, many of which lacked transparency, recently introduced rules have the potential of serving as a useful depoliticized policy framework, and over time, can contribute to stability and growth. To this end, they need to be well designed and supported by an appropriate institutional infrastructure.

Series:

Working Paper No. 2001/145

Subject:

Budget planning and preparation Fiscal policy Fiscal rules Inflation targeting Monetary policy Public debt Public financial management (PFM)

English

Publication Date:

September 1, 2001

ISBN/ISSN:

9781451856545/1018-5941

Stock No:

WPIEA1452001

Pages:

24

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