## Considering the IMF's Perspective on a "Sound Fiscal Policy"

_IMF Policy Discussion Papers, July 1, 2002_

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## Bibliographic details
- Authors: Peter S. Heller
- Published: July 1, 2002
- Series: IMF Policy Discussion Papers
- DOI: https://doi.org/10.5089/9781451971019.003

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### Overview and purpose
- Provides a perspective on how the IMF assesses a “sound fiscal policy,” focusing principally on industrial and emerging market economies.
- Observes six central criteria used in assessment.

### Six central criteria observed
- The short-term fiscal policy stance, with greater emphasis on automatic stabilizers than discretionary fiscal policy.
- Relevance of medium- and sometimes long-term issues.
- Fiscal sustainability.
- Capacity for aggregate fiscal policy implementation (including political economy factors).
- Structural content of fiscal policy (tax efficiency and public expenditure quality).
- Institutional, governance, and process issues associated with budget implementation and revenue collection.

### Key analytical observations
- Greater emphasis could be placed on an adequate margin to deal with uncertain long-term challenges.
- Focus is principally on industrial and emerging market economies.
- Emphasis on automatic stabilizers indicates a preference for countercyclical buffers in short-term policy assessment over discretionary measures.

### Subject classifications and keywords
- Subject: Expenditure, Fiscal policy, Fiscal stance, Fiscal sustainability, Public debt
- Keywords: country authorities, Fiscal Policy, Fiscal stance, Fiscal sustainability, Global, IMF assessment, IMF consultation mission report, IMF economist, IMF mission, IMF staff, IMF urge government, IMF's perspective, International Monetary Fund, PDP

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_Source: https://www.imf.org/en/publications/imf-policy-discussion-papers/issues/2016/12/30/considering-the-imf-s-perspective-on-a-sound-fiscal-policy-15901_