{
  "title": "Second-Generation Fiscal Rules: Balancing Simlicity, Flexibility, and Enforceability",
  "publication": "Staff Discussion Notes, April 13, 2018",
  "sourceUrl": "https://www.imf.org/en/publications/staff-discussion-notes/issues/2018/04/12/second-generation-fiscal-rules-balancing-simplicity-flexibility-and-enforceability-45131",
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  "summary": "Fiscal rule frameworks have evolved significantly in response to the global financial crisis. Many countries have reformed their fiscal rules or introduced new ones with a view to enhancing the credibility of fiscal policy and providing a medium-term anchor.",
  "sections": [
    {
      "heading": "Overview and scope",
      "content": "- Title: Second-Generation Fiscal Rules: Balancing Simplicity, Flexibility, and Enforceability\n- Authors: Luc Eyraud, Xavier Debrun, Andrew Hodge, Victor Duarte Lledo, Catherine A Pattillo\n- Publication type: Staff Discussion Notes\n- Date: April 13, 2018\n- Series: Staff Discussion Notes No. 2018/004\n- Issue: 004\n- Volume: 2018\n- Pages: 132\n- DOI: https://doi.org/10.5089/9781484350683.006\n- Stock No: SDNEA2018004\n- ISBN: 9781484350683\n- ISSN: 2617-6750"
    },
    {
      "heading": "Key findings and diagnostic takeaways",
      "content": "- Fiscal rule frameworks have evolved significantly in response to the global financial crisis.\n- Many countries have reformed existing fiscal rules or introduced new ones with the goals of:\n  - enhancing the credibility of fiscal policy, and\n  - providing a medium-term fiscal anchor.\n- Enforcement and monitoring mechanisms have been upgraded in many jurisdictions.\n- These innovations have increased the complexity of systems of rules, making them more complicated to operate.\n- Despite reforms and upgraded enforcement/monitoring, compliance with fiscal rules has not improved."
    },
    {
      "heading": "Research contributions highlighted",
      "content": "- The SDN:\n  - takes stock of past experiences with fiscal rules,\n  - reviews recent reforms to fiscal rule frameworks, and\n  - presents new research on the effectiveness of rules."
    },
    {
      "heading": "Guiding principles and policy recommendations",
      "content": "- The SDN proposes guiding principles for future fiscal rule reforms to strike a better balance between:\n  - simplicity,\n  - flexibility, and\n  - enforceability."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Fiscal policy, Public financial management (PFM)\n- Keywords: balance rule, Budget planning and preparation, business cycle, debt, deficit bias, Europe, expenditure rule, fiscal governance, Fiscal policy, fiscal rule, fiscal rules, Fiscal stance, Global, rule adoption, rule effectiveness, SDN\n\nSource: Staff Discussion Note \"Second-Generation Fiscal Rules: Balancing Simplicity, Flexibility, and Enforceability\" (April 13, 2018).\n\n---\n\n Content in this bundle\n\n- Staff Discussion Note\n  - Staff Discussion Note (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Staff Discussion Note (PDF){rel=\"external\" type=\"application/pdf\"}\n- Staff Discussion Note\n  - Staff Discussion Note (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Staff Discussion Note (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/staff-discussion-notes/issues/2018/04/12/second-generation-fiscal-rules-balancing-simplicity-flexibility-and-enforceability-45131"
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    "Authors: Luc Eyraud, Xavier Debrun, Andrew Hodge, Victor Duarte Lledo, Catherine A Pattillo",
    "Published: April 13, 2018",
    "Series: Staff Discussion Notes",
    "DOI: https://doi.org/10.5089/9781484350683.006",
    "Title: Second-Generation Fiscal Rules: Balancing Simplicity, Flexibility, and Enforceability",
    "Authors: Luc Eyraud, Xavier Debrun, Andrew Hodge, Victor Duarte Lledo, Catherine A Pattillo",
    "Publication type: Staff Discussion Notes",
    "Date: April 13, 2018",
    "Series: Staff Discussion Notes No. 2018/004",
    "Issue: 004",
    "Volume: 2018",
    "Pages: 132",
    "DOI: https://doi.org/10.5089/9781484350683.006",
    "Stock No: SDNEA2018004",
    "ISBN: 9781484350683",
    "ISSN: 2617-6750",
    "Fiscal rule frameworks have evolved significantly in response to the global financial crisis.",
    "Many countries have reformed existing fiscal rules or introduced new ones with the goals of:",
    "Enforcement and monitoring mechanisms have been upgraded in many jurisdictions.",
    "These innovations have increased the complexity of systems of rules, making them more complicated to operate.",
    "Despite reforms and upgraded enforcement/monitoring, compliance with fiscal rules has not improved.",
    "The SDN:",
    "The SDN proposes guiding principles for future fiscal rule reforms to strike a better balance between:",
    "Subject: Fiscal policy, Public financial management (PFM)",
    "Keywords: balance rule, Budget planning and preparation, business cycle, debt, deficit bias, Europe, expenditure rule, fiscal governance, Fiscal policy, fiscal rule, fiscal rules, Fiscal stance, Global, rule adoption, rule effectiveness, SDN",
    "**Staff Discussion Note**",
    "**Staff Discussion Note**"
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