Economics

Peter S. Heller

Considering the IMF's Perspective on a »Sound Fiscal Policy«

Section: Articles
FinanzArchiv (FA)

Volume 59 () / Issue 1, pp. 141-161 (21)

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This paper provides a perspective on how the IMF assesses a ''sound fiscal policy,'' focusing principally on industrial and emerging market economies. It observes six central criteria: the short-term fiscal policy stance, with greater emphasis on automatic stabilizers than discretionary fiscal policy; relevance of medium and sometimes long-term issues; fiscal sustainability; capacity for aggregate fiscal policy implementation (including political economy factors); structural content of fiscal policy (tax efficiency and public expenditure quality); and institutional, governance, and process issues associated with budget implementation and revenue collection. Greater emphasis could be placed on an adequate margin to deal with uncertain long-term challenges.
Authors/Editors

Peter S. Heller No current data available.