Promoting Fiscal Discipline

Business & Finance, Economics, Public Finance, Finance & Investing, Banks & Banking, Macroeconomics
Cover of the book Promoting Fiscal Discipline by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian, INTERNATIONAL MONETARY FUND
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian ISBN: 9781452729152
Publisher: INTERNATIONAL MONETARY FUND Publication: October 18, 2007
Imprint: INTERNATIONAL MONETARY FUND Language: English
Author: Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
ISBN: 9781452729152
Publisher: INTERNATIONAL MONETARY FUND
Publication: October 18, 2007
Imprint: INTERNATIONAL MONETARY FUND
Language: English
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.
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
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.

More books from INTERNATIONAL MONETARY FUND

Cover of the book Fund and China in the international Monetary System by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
Cover of the book Measuring the Potential Output of South Africa by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
Cover of the book The Adoption of Indirect Instruments of Monetary Policy by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
Cover of the book World Economic Outlook, October 1994 by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
Cover of the book The Coordinated Direct Investment Survey Guide 2015 by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
Cover of the book Financial Policy Workshops: The Case of Kenya by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
Cover of the book A Banking Union for the Euro Area by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
Cover of the book In the Wake of the Global Economic Crisis: Adjusting to Lower Revenue of the Southern African Customs Union in Botswana, Lesotho, Namibia, and Swaziland by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
Cover of the book Migration and Remittances in Moldova by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
Cover of the book Supply-Side Tax Policy: Its Relevance to Developing Countries by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
Cover of the book Fiscal Implications of the Global Economic and Financial Crisis by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
Cover of the book Anchoring Growth: The Importance of Productivity-Enhancing Reforms in Emerging Market and Developing Economies by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
Cover of the book Revenue Administration: Developing a Taxpayer Compliance Program by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
Cover of the book Fiscal Transparency Handbook (2018) by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
Cover of the book Revenue Implications of Trade Liberalization by Manmohan Mr. Kumar, Teresa Mrs. Ter-Minassian
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy