Fiscal Policy Rules

Occasional Papers, July 22, 1998

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Fiscal Policy Rules

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Bibliographic details

• Authors: George Kopits, Steven A. Symansky
• Published: July 22, 1998
• Series: Occasional Papers
• DOI: https://doi.org/10.5089/9781557757043.084

Overview and Research Questions

• What are fiscal policy rules?
• What are the principal benefits and drawbacks associated with various fiscal rules, particularly compared with alternative approaches to fiscal adjustment?
• Can fiscal rules contribute to long-run sustainability and welfare without sacrificing short-run stabilization?
• If so, what characteristics of fiscal rules make this contribution most effective?
• In what circumstances and contexts, if any, should the IMF encourage its member countries to adopt fiscal rules?
• This paper seeks to identify sensible fiscal policy rules that can succeed, if chosen by a member country, as an alternative to descretionary fiscal rules.

Publication and Authorship

• Authors: George Kopits, Steven A. Symansky
• Publication date: July 22, 1998
• Series: Occasional Paper No. 1998/011
• Issue: 011
• Volume: 1998
• Pages: 45
• DOI: https://doi.org/10.5089/9781557757043.084
• Stock No: S162EA0000000
• ISBN: 9781557757043
• ISSN: 0251-6365

Key Themes and Concepts

• Fiscal rules versus discretionary fiscal policy.
• Types of fiscal rules referenced in keywords and subjects:
  • balanced-budget rule
  • debt rule
  • no-deficit rule
  • deficit
  • fiscal policy rule
  • fiscal consolidation
  • Government debt management
  • Public financial management (PFM)
• Geographical and institutional contexts mentioned:
  • Europe
  • Western Europe
  • Global
  • member government
  • government

Summary Findings (from the source text)

• The paper analyzes whether fiscal rules can:
  • contribute to long-run sustainability and welfare without sacrificing short-run stabilization;
  • succeed as an alternative to discretionary fiscal rules if chosen by a member country.
• The paper seeks to identify characteristics of fiscal rules that make them most effective.

Subject Areas and Keywords

• Subject: Budget planning and preparation, Fiscal consolidation, Fiscal policy, Fiscal rules, Government debt management, Public financial management (PFM)
• Keywords: balanced-budget rule, Budget planning and preparation, debt rule, deficit, Europe, Fiscal consolidation, fiscal policy rule, Fiscal rules, Global, government, Government debt management, member government, no-deficit rule, OP, rule, Western Europe

International Monetary Fund. Fiscal Policy Rules. Occasional Paper No. 1998/011. July 22, 1998.