## The Return to Fiscal Rules

_Staff Discussion Notes, October 11, 2022_

## Source details

**Canonical URL:** [The Return to Fiscal Rules](https://www.imf.org/en/publications/staff-discussion-notes/issues/2022/10/11/the-return-to-fiscal-rules-523709)

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- [Markdown version](/en/publications/staff-discussion-notes/issues/2022/10/11/the-return-to-fiscal-rules-523709/index.md)
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## Bibliographic details
- Authors: Francesca Caselli, Hamid R Davoodi, Carlos Goncalves, Gee Hee Hong, Paulo A Medas, Anh D. M. Nguyen, Jiae Yoo
- Published: October 11, 2022
- Series: Staff Discussion Notes
- DOI: https://doi.org/10.5089/9798400219467.006

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### Summary
- Governments face difficult policy trade-offs with record debt levels, tightening monetary policies, and urgent demands, including food and energy crises, the climate agenda, and population aging.
- Governments need to communicate fiscal plans to reduce debt sustainability risks and promote consistent macroeconomic policies.
- Many envisage a return to fiscal rules that had been suspended during the pandemic to strengthen credibility.
- This situation offers an opportunity to rethink fiscal rules and determine how governments can make fiscal policy more agile, including in responding to crises, without undermining fiscal sustainability.
- A risk-based medium-term fiscal framework that combines standards, rules, and strengthened institutions would strike a better balance between flexibility and credibility.

### Key themes and concepts
- Fiscal Anchors
- Fiscal councils
- Fiscal Credibility
- Fiscal governance
- Fiscal Limits
- Fiscal Rules
- countercyclical fiscal policy
- debt rule
- debt threshold
- debt vulnerability
- Independent Fiscal Institutions
- policy error
- Public Debt Sustainability

### Publication and authorship
- Title: The Return to Fiscal Rules
- By Francesca Caselli, Hamid R Davoodi, Carlos Goncalves, Gee Hee Hong, Paulo A Medas, Anh D. M. Nguyen, Jiae Yoo
- Date: October 11, 2022
- Series: Staff Discussion Notes No. 2022/002
- Issue: 002
- Volume: 2022
- Pages: 36
- DOI: https://doi.org/10.5089/9798400219467.006
- Stock No: SDNEA2022002
- ISBN: 9798400219467
- ISSN: 2617-6750
- Subject: Economic sectors, Financial crises, Fiscal policy, Public debt
- Keywords: countercyclical fiscal policy, debt rule, debt threshold, debt vulnerability, Fiscal Anchors, Fiscal councils, Fiscal Credibility, Fiscal governance, Fiscal Limits, Fiscal Rules, Global, IMF Staff Discussion Note 2022/002, Independent Fiscal Institutions, policy error, Public Debt Sustainability

*Staff Discussion Note — The Return to Fiscal Rules (Staff Discussion Notes 2022, 002).*

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## Content in this bundle

- **Staff Discussion Note**
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_Source: https://www.imf.org/en/publications/staff-discussion-notes/issues/2022/10/11/the-return-to-fiscal-rules-523709_