Fiscal Rules in Response to the Crisis : Toward the "Next-Generation" Rules: A New Dataset

Author/Editor: Nina Budina ; Andrea Schaechter ; Anke Weber ; Tidiane Kinda
Publication Date: July 01, 2012
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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: Strengthening fiscal frameworks, in particular fiscal rules, has emerged as a key response to the fiscal legacy of the crisis. This paper takes stock of fiscal rules in use around the world, compiles a dataset - covering national and supranational fiscal rules, in 81 countries from 1985 to end-March 2012 - and presents details about the rules’ key design elements, particularly in support of enforcement. This information is summarized in a set of fiscal rules indices. Three key findings emerge: (i) many new fiscal rules have been adopted and existing ones strengthened in response to the crisis; (ii) the number of fiscal rules and the comprehensiveness of the design features in emerging economies has caught up to those in advanced economies; and (iii) the "next-generation" fiscal rules are increasingly complex as they combine the objectives of sustainability and with the need for flexibility in response to shocks, thereby creating new challenges for implementation, communication, and monitoring.
Series: Working Paper No. 12/187
Subject(s): External shocks | Fiscal policy

Author's Keyword(s): Fiscal rules | fiscal governance | fiscal policy.
Notes Fiscal Rules Dataset, 1985 - 2012
Publication Date: July 01, 2012
ISBN/ISSN: 9781475505351/1018-5941 Format: Paper
Stock No: WPIEA2012187 Pages: 49
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