Fiscal Rules: Useful Policy Framework or Unnecessary Ornament?

24 Pages Posted: 1 Feb 2006

See all articles by George Kopits

George Kopits

International Monetary Fund (IMF)

Multiple version iconThere are 2 versions of this paper

Date Written: September 2001

Abstract

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.

Keywords: fiscal policy

JEL Classification: E61, E62, H6

Suggested Citation

Kopits, George, Fiscal Rules: Useful Policy Framework or Unnecessary Ornament? (September 2001). IMF Working Paper, Vol. , pp. 1-24, 2001. Available at SSRN: https://ssrn.com/abstract=879947

George Kopits (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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