What should fiscal councils do?
AbstractThe paper analyses theoretically what role fiscal councils could play and surveys empirically the activities of existing councils. Case studies of the Swedish Fiscal Policy Council and the UK Office for Budget Responsibility are done. It is concluded that fiscal councils should be advisory, rather than decision-making, and work as complements, rather than substitutes, to fiscal rules. A key issue is the political fragility of fiscal councils and how their long-run viability should be secured. Three ways of guaranteeing their independence are suggested: (1) reputation-building; (2)formal national rules; and (3) international monitoring.
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Bibliographic InfoArticle provided by CEPR & CES & MSH in its journal Economic Policy.
Volume (Year): 26 (2011)
Issue (Month): 68 (October)
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Other versions of this item:
- Lars Calmfors & Simon Wren-Lewis, 2011. "What Should Fiscal Councils Do?," CESifo Working Paper Series 3382, CESifo Group Munich.
- Simon Wren-Lewis & Lars Calmfors, 2011. "What should fiscal councils do?," Economics Series Working Papers 537, University of Oxford, Department of Economics.
- Calmfors, Lars & Wren-Lewis, Simon, 2010. "What Should Fiscal Councils Do?," Seminar Papers 768, Stockholm University, Institute for International Economic Studies.
- E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
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by Mainly Macro in Mainly Macro on 2012-02-03 12:26:00
- Fiscal councils: births, and the trials of youth
by Mainly Macro in Mainly Macro on 2012-07-05 15:09:00
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by Guest Author in The Big Picture on 2012-09-05 12:30:01
- The work of John Maynard Keynes shows us that counter-cyclical fiscal policy and an easing of austerity may offer a way out of Eurozone crisis
by Blog Admin in British Politics and Policy at LSE on 2012-08-25 13:30:22
- Why politicians ignore economists on austerity
by Mainly Macro in Mainly Macro on 2013-03-04 20:52:00
- Petit prÃ©cis de rÃ¨gles budgÃ©taires
by ? in D'un champ l'autre on 2014-05-19 23:31:00
- Where Austerity Really Rules
by Mainly Macro in Mainly Macro on 2013-03-01 18:18:00
- More on Naive Fiscal Cynicism
by Mainly Macro in Mainly Macro on 2013-05-06 16:19:00
- Time inconsistency and debt
by Mainly Macro in Mainly Macro on 2014-03-28 16:35:00
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