Fiscal Rule Concept and Policy Framework

Year 2018, , 154 - 185, 31.01.2018

Nurhan Hande Sevgi

https://doi.org/10.25295/fsecon.2018.01.008

Cited By: 1

Abstract

In point of fact, the notions such as transparency and accountability have gained significance in recent years and have made fiscal discipline and fiscal rule more popular concept for achieving fiscal discipline. There observed an increase in the number of countries prefering to apply rules in fiscal policy between years 2000 and 2015.

The fiscal policies of governments can lead to an increase in budget deficits and therefore debt stocks. The new financial crises have been built on such issues. The fiscal rule, which can be regarded as a rule-based policy tool, is the instrument of fiscal policy that can be used to ensure fiscal discipline and to prevent such problems from occurring.

In this study, rule-based fiscal policies for ensuring fiscal discipline is explained specific to fiscal rule concept. This is a descriptive study that examines the terms fiscal discipline and fiscal rule and the relationship between them.

Keywords

Fiscal Discipline, Fiscal Rule, Monetary Policy, Rule Based Policy

References

• ALESINA, Alberto, BAYOUMI, Tamim, The Costs and Benefits of Fiscal Rules: Evidence from US States, NBER Working Papers, No.5614, June, 1996.
• ALESINA, Alberto, TABELLINI, Guido, Why is Fiscal Policy Procyclical?, NBER Working Papers, No.11600, 2005.
• ALTSHULER, Rosanne, BOSWORTH, Barry, Fiscal Consolidation in America: the Policy Options, 2011. http://www.nomurafoundation.or.jp/data/20101116_Rosanne_Altshuler-Barry_Bosworth.pdf
• Auerbach, Alan J., vd.; Activist Fiscal Policy, Journal of Economic Perspective, Vol.24, No.4, 2010, p.141-164.
• BLANCHARD, Oliver, PEROTTI, Roberto, An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output, The Quarterly Journal of Economics, Vol.117, No.4,Nov., 2002, p.1329-1368
• Buchanan, J.M., Wagner, R.E.; A Return to Fiscal Principle, Chapter 12,; Democracy in Deficit , Academic Press, New York, 1977, p.173-182. (“Mali Disiplin ve MaliDenge” Çev.Bernur Açıkgöz).
• Buiter, W.H., “Ten Commandments for a Fiscal Rule in the E(M)U”, Oxford Review of Economic Policy, Vol.19, No.01, 2003.
• BUTI, Marco, GUIDICE, Gabriele, Maastricht Fiscal Rules at Ten: An Assessment, 2002. http://www.cepr.org/meets/wkcn/1/1510/papers/buti2.pdf
• COTTARELLI, Carlo, (approval), IMF Fiscal Affairs Department Fiscal Rules-Anchoring Expectations for Sustainable Public Finances, 2009.
• DORNBUSCH, Rudiger, FISCHER, Stanley, Makroekonomi, çev. Erhan Yıldırım vd., Akademi Yayınları, 1998.
• Drazen, Allan, Fiscal Rules from a Political Economy Perspective, 2002. http://primage.tau.ac.il/libraries/brender/booksf/1615545.pdf
• Easterly, W., (1999) “When is fiscal adjustment an illusion?” Economic Policy, Vol.14, No.28, p.55-86.
• Froyen, Richard T.; Macroeconomics: Theories and Policies, New Jersey, Pearson Prentice Hall, 8th Edition, 2005.
• GÜNAY, Ayşe, Mali Disiplinin Sağlanmasında Anayasal Denk Bütçe Yaklaşımı ve Türkiye’de Uygulanabilirliği, Maliye Bakanlığı Strateji Geliştirme Başkanlığı, No.2007/375, 2007.
• HALLERBERG, Mark, vd. The Design of Fiscal Rules and Forms of Governance in European Union Countries, European Journal of Political Economy, No.23, 2007, p.338–359.
• Hedbávný, P., vd., (2007) “A Fiscal Rule That Has Teeth: A Suggestion for a ‘Fiscal Sustainability Council’ Underpinned By the Financial Market”, AUCO Czech Economic Review, Vol.1/2007, p. 32-53.
• HEMMING, Richard, Policies to Promote Fiscal Discipline, 2003. (Workshop on Internationalization and Policy Transfer to be held at Tulane University on April 11–12, 2003.)
• Kennedy, S., Robbins, J., (2003) “The Role of Fiscal Rules in Determining Fiscal Performance”, Fiscal Rules Conference.
• KOPITS, George, SYMANSKY, Steven, Fiscal Policy Rules, IMF Occasional Paper, No.162, 1998.
• Kopits, G., (2001) “Fiscal Rules: Useful Policy Framework or Unnecessary Ornament?”, IMF Working Paper, Vol.WP/01/145.
• Lane, Philip R., The Cyclical Behaviour of Fiscal Policy: Evidence from the OECD, Journal of Public Economics, Vol.87, 2003, p.2661-2675.
• Milesi-Ferretti, G.M., (2003) “Good, Bad or Ugly? On the Effects of Fiscal Rules with Creative Accounting” Journal of Public Economics, Vol. 88, p.377-394.
• Nelson, Charles R.; Macroeconomics: Chapter 11, An Introduction, Keynesian Fiscal Policy and the Multipliers, 2006.
• RAMSEY, Frank P., A Contribution to the Theory of Taxation, The Economic Journal, Vol. 37, No. 145, 1927, p.47-61
• SIMONE, Alejandro S., TOPALOVA, Petia, India’s Experience with Fiscal Rules: An Evaluation and The Way Forward, IMF Working Paper, No. WP/09/175, 2009.
• SIWIN´SKA, Joanna, BUJAK, Piotr, Short Run Macroeconomic Effects of Discretionary Fiscal Policy Changes, Center for Social and Economic Research Studies & Analyses No. 261, Warsaw 2003.
• SNOWDON, Brian, VANE, Howard, R., Modern Macroeconomics: It’s Origins Development and Current State, Edward Elgar Publishing, 2005.
• Tanner, Evan; Fiscal Rules and Countercyclical Policy: Frank Ramsey Meets Gram-Rudman-Hollings, WP/03/220, 2003.
• Taylor, John B.; Reassessing Discretionary Fiscal Policy, The Journal of Economic Perspectives, Vol.14, No.3, 2000, p.21-36.
• TAYLOR, John B., Discretion versus Policy Rules in Practice, Carnegie-Rochester Conference Series on Public Policy, Vol.39, 1993, p.195-214.
• VON HAGEN, Jurgen, Fiscal Rules and Fiscal Performance in the EU and Japan, IMES Discussion Papers, No. 2005-E-5, 2005.