Promoting Fiscal Discipline / Manmohan Kumar, Teresa Ter-Minassian.

Format:

Book

Government document

Author/Creator:

Kumar, Manmohan.

Contributor:

Ter-Minassian, Teresa.

International Monetary Fund.

Series:

Books

Language:

English

Subjects (All):

Fiscal policy.

Finance, Public.

Economic policy.

Physical Description:

1 online resource (255 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2007.

Language Note:

English

Summary:

Fiscal discipline is essential to improve and sustain economic performance, maintain macroeconomic stability, and reduce vulnerabilities. Discipline is especially important if countries, industrial as well as developing, are to successfully meet the challenges, and reap the benefits, of economic and financial globalization. Lack of fiscal discipline generally stems from the injudicious use of policy discretion. The benefits of discretion are seen in terms of the ability of policymakers to respond to unexpected shocks and in allowing elected political representatives to fulfill their mandates. But discretion can be misused, resulting in persistent deficits and procyclical policies, rising debt levels, and, over time, a loss in policy credibility. The authors first explore the role of discretion in fiscal policy, and the extent, consequences, and causes of procyclicality, particularly in good times. They then examine how a variety of institutional approaches—fiscal rules, fiscal responsibility laws, and fiscal agencies—can help improve fiscal discipline. While each of these approaches can play a useful role, the authors suggest that a strategy combining them is likely to be particularly beneficial. Although such a strategy requires political commitment and effective fiscal management, at the same time, the strategy itself can bolster political commitment by highlighting the restraints on government and raising the costs of failing to respect them.

Contents:

Fiscal discipline : key issues and overview / Manmohan S. Kumar and Teresa Ter-Minassian

Discretion, institutions, and fiscal discipline / Xavier Debrun, David Hauner, and Manmohan S. Kumar

Cyclicality of fiscal policy / Fabrizio Balassone and Manmohan S. Kumar

Addressing the procyclical bias / Fabrizio Balassone and Manmohan S. Kumar

Fiscal responsibility laws / Ana Corbacho and Gerd Schwartz

The role for fiscal agencies / Xavier Debrun, David Hauner, and Manmohan S. Kumar.

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on print version record.

ISBN:

9786613847973

9781462342143

1462342140

9781452729152

1452729158

9781283535526

1283535521

9781451927337

1451927339

OCLC:

867926566