Can the debt growth be stopped? : rules-based policy options for addressing the federal fiscal crisis / John D. Merrifield and Barry W. Poulson.

Format:

Book

Author/Creator:

Merrifield, John, 1955- author.

Poulson, Barry Warren, 1937- author.

Language:

English

Subjects (All):

Debts, Public.

Public administration--United States.

Public administration.

United States.

Public administration--Case studies.

Fiscal policy--United States.

Fiscal policy.

Genre:

Case studies.

Physical Description:

xv, 191 pages : illustrations ; 24 cm

Place of Publication:

Lanham : Lexington Books, [2016]

Summary:

Can the Debt Growth Be Stopped? explores new fiscal rules introduced in Organzation for Economic Cooperation Development (OECD) countries and the relevance of fiscal rules for the unique fiscal policies and institutions in the United States. The rules in different countries are compared with a more in-depth analysis of two countries with arguably the most successful fiscal rules-Switzerland and Sweden. This study compares the challenge of fiscal consolidation facing the United States with that in other OECD countries. The centerpiece of this study is the analysis of fiscal rules using a dynamic simulation model. A Swiss-style fiscal rule is compared to an alternative fiscal rule proposed by Representative Amash, H. J. Res 24. Merrifield and Poulson propose a new fiscal rule designed for the unique fiscal institutions in the United States. Dynamic scoring is used to measure the impact of different fiscal rules on the federal budget, economic growth, and revenue. The effectiveness of the different fiscal rules is analyzed with respect to several criteria. A major objective of the rules is fiscal stabilization in the long run to bring debt/GDP ratios below tolerance levels. The fiscal rules are also designed for budget stabilization in the medium term, such that deficits in periods of recession are offset by surplus revenue in periods of economic expansion. The concluding section of this study explores the political economy of enacting new fiscal rules in the United States. It proposes fundamental changes in budget process required for the proposed fiscal rule to be effective. This study concludes with a discussion of alternative routes to enacting new fiscal rules and the prospects for new fiscal rules to be enacted in the United States. Book jacket.

Contents:

A new era of fiscal rules

Economic analysis of fiscal rules

Case studies : fiscal rules in Switzerland and Sweden

Fiscal rules in the United States

Should the United States go Swiss?

Designing a new fiscal rule for the United States

Toward a new budget process

The political economy of new fiscal rules.

Notes:

Includes bibliographical references (pages 169-179) and index.

Other Format:

Online version: Merrifield, John, 1955- author. Can the debt growth be stopped?

ISBN:

9781498518093

1498518095

OCLC:

927381987