Series: IMF Working Papers
Author(s): Xavier Debrun , and Manmohan Kumar
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 July 2007
Keywords: Deficit bias, credibility, accountability, voters, fiscal institutions, fiscal rule, Accountablility,
This paper discusses the role of fiscal institutions, including budget rules and non-partisan agencies, in enhancing fiscal discipline. A dynamic model of fiscal policy shows that optimal institutions lack credibil...