Cover Rules-Based Fiscal Policy in France, Germany, Italy, and Spain
Rules-Based Fiscal Policy in France, Germany, Italy, and Spain
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Abstract

Fiscal rules can help to counteract the deficits and spending biases that too often originate in the political process. Rules that constrain spending--rather than the balance--allow fiscal policy to be countercyclical. Yet the design of effective spending rules is by no means straightforward. Should a rule be real or nominal? How comprehensive should the definition of spending be? What safeguards ensure the credibility of a rule? How do rules work in decentralized systems where regions and states are partially autonomous? France, Germany, Italy, and Spain--countries that could benefit from more emphasis on fiscal rules to constrain spending--are explored here as case studies.

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Author:
Ms. Teresa Daban Sanchez
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,
Mr. Steven A. Symansky
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Mr. Gian M Milesi-Ferretti
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Ms. Enrica Detragiache
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Gabriel Di Bella https://isni.org/isni/0000000404811396 International Monetary Fund

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Series:
Occasional Papers
Publisher:
International Monetary Fund
Language:
English
Publication Date:
14 Nov 2003
DOI:
https://doi.org/10.5089/9781589062160.084
ISBN:
9781589062160
ISSN:
0251-6365
Pages:
46
Keywords:
OP; spending rule; deficit; spending; rule; debt target; expenditure rule; fiscal policy measure; private sector response; Fiscal rules; Fiscal stance; Western Europe
Legal-disclaimer:
The views expressed in this book are those of the authors and should not be reported as or attributed to the International Monetary Fund, its Executive Board, or the governments of any of its member countries.
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