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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3382.
Date of creation: 2011
Date of revision:
deficit bias; fiscal rules; fiscal councils;
Other versions of this item:
- Calmfors, Lars & Wren-Lewis, Simon, 2010. "What Should Fiscal Councils Do?," Seminar Papers 768, Stockholm University, Institute for International Economic Studies.
- Simon Wren-Lewis & Lars Calmfors, 2011. "What should fiscal councils do?," Economics Series Working Papers 537, University of Oxford, Department of Economics.
- H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Leith, Campbell & Wren-Lewis, Simon, 2006.
"Compatibility between monetary and fiscal policy under EMU,"
European Economic Review,
Elsevier, vol. 50(6), pages 1529-1556, August.
- Campbell leith & Simon Wren-Lewis, . "Compatibility Between Monetary and Fiscal Policy Under EMU," Working Papers 2001_15, Business School - Economics, University of Glasgow.
- Leith, Campbell & Simon Wren-Lewis, 2002. "Compatibility Between Monetary and Fiscal Policy Under EMU," Royal Economic Society Annual Conference 2002 124, Royal Economic Society.
- Simon Wren-Lewis, 2011. "Comparing the delegation of monetary and fiscal policy," Economics Series Working Papers 540, University of Oxford, Department of Economics.
- Simon Wren-Lewis, 2010. "Macroeconomic policy in light of the credit crunch: the return of counter-cyclical fiscal policy?," Oxford Review of Economic Policy, Oxford University Press, vol. 26(1), pages 71-86, Spring.
- Schmitt-Grohe, Stephanie & Uribe, Martin, 2004.
"Optimal fiscal and monetary policy under sticky prices,"
Journal of Economic Theory,
Elsevier, vol. 114(2), pages 198-230, February.
- Martin Uribe & Stephanie Schmitt-Grohe, 2001. "Optimal fiscal and monetary policy under sticky prices," Proceedings, Federal Reserve Bank of San Francisco, issue Jun.
- Stephanie Schmitt-Grohe & Martin Uribe, 2001. "Optimal Fiscal and Monetary Policy Under Sticky Prices," Departmental Working Papers 200105, Rutgers University, Department of Economics.
- Stephanie Schmitt-Grohe & Martin Uribe, 2002. "Optimal Fiscal and Monetary Policy Under Sticky Prices," NBER Working Papers 9220, National Bureau of Economic Research, Inc.
- Schmitt-Grohé, Stephanie & Uribe, Martín, 2001. "Optimal Fiscal and Monetary Policy Under Sticky Prices," CEPR Discussion Papers 2942, C.E.P.R. Discussion Papers.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- 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
- Euro Deja Vu?
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
- Keynes, Counter-cyclical Fiscal Policy & a Way Out of Eurozone Crisis
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
- Blume, Lorenz & Voigt, Stefan, 2013. "The economic effects of constitutional budget institutions," European Journal of Political Economy, Elsevier, vol. 29(C), pages 236-251.
- repec:spo:wpecon:info:hdl:2441/eo6779thqgm5r489m6u1i2a0o is not listed on IDEAS
- Catherine Mathieu & Henri Sterdyniak, 2012.
"Faut-il des règles de politique budgétaire ?,"
Revue de l'OFCE,
Presses de Sciences-Po, vol. 0(7), pages 299-346.
- Catherine Mathieu & Henri Sterdyniak, 2012. "Faut-il des règles de politique budgétaire ?," Sciences Po publications 2012-07, Sciences Po.
- Catherine Mathieu & Henri Sterdyniak, 2012. "Faut-il des règles de politiques budgétaires ?," Sciences Po publications info:hdl:2441/eo6779thqgm, Sciences Po.
- Catherine Mathieu & Henri Sterdyniak, 2012. "Faut-il des règles de politique budgétaire," Documents de Travail de l'OFCE 2012-07, Observatoire Francais des Conjonctures Economiques (OFCE).
- Dolls, Mathias & Peichl, Andreas & Zimmermann, Klaus F., 2011. "Eine Herausforderung für die G20: Global vereinbarte Schuldenbremsen und transnationale fiskalpolitische Aufsichtsgremien," IZA Standpunkte 45, Institute for the Study of Labor (IZA).
- André Grjebine, 2013. "L’Eurosystème: un mécanisme de transferts en faveur des pays déficitaires ? Le débat," Sciences Po publications info:hdl:2441/eo6779thqgm, Sciences Po.
- Flodén, Martin, 2013.
"A role model for the conduct of fiscal policy? Experiences from Sweden,"
Journal of International Money and Finance,
Elsevier, vol. 34(C), pages 177-197.
- Flodén, Martin, 2012. "A Role Model for the Conduct of Fiscal Policy? Experiences from Sweden," CEPR Discussion Papers 9095, C.E.P.R. Discussion Papers.
- Baldi, Guido, 2013. "Fiscal Policy Institutions and Economic Transition in North Africa," MPRA Paper 48677, University Library of Munich, Germany.
- Andrew Hughes Hallett, 2013. "Is Independence Possible in an Interdependent World? Scotland vs. the UK's Participation in the European Economy," Bruges European Economic Policy Briefings 30, European Economic Studies Department, College of Europe.
- World Bank, 2013. "World Development Report 2014," World Bank Publications, The World Bank, number 16092, October.
- Simon Wren-Lewis & Jonathan Portes, 2014.
"Issues in the Design of Fiscal Policy Rules,"
Economics Series Working Papers
704, University of Oxford, Department of Economics.
- Haffert, Lukas & Mehrtens, Philip, 2013. "From austerity to expansion? Consolidation, budget surpluses, and the decline of fiscal capacity," MPIfG Discussion Paper 13/16, Max Planck Institute for the Study of Societies.
- Nerlich, Carolin & Reuter, Wolf Heinrich, 2013. "The design of national fiscal frameworks and their budgetary impact," Working Paper Series 1588, European Central Bank.
- Bos, Frits & Teulings, Coen, 2011. "Evaluating election platforms: a task for fiscal councils? Scope and rules of the game in view of 25 years of Dutch practice," MPRA Paper 31536, University Library of Munich, Germany.
- Michael Bergman, 2011. "Best in Class: Public Finances in Sweden during the Financial Crisis," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(4), pages 431-453, December.
- repec:spo:wpecon:info:hdl:2441/eo6779thqgm5r489maqa474kg is not listed on IDEAS
- Andersen, Torben M., 2013. "Fiscal policy targeting under imperfect information," Journal of International Money and Finance, Elsevier, vol. 34(C), pages 114-130.
- Jonathan Portes, 2014. "Issues in the Design of Fiscal Policy Rules," NIESR Discussion Papers 11865, National Institute of Economic and Social Research.
- Douglas Sutherland & Peter Hoeller & Rossana Merola, 2012. "Fiscal Consolidation: Part 1. How Much is Needed and How to Reduce Debt to a Prudent Level?," OECD Economics Department Working Papers 932, OECD Publishing.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).
If references are entirely missing, you can add them using this form.