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 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:
- 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.
- H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- 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
- 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
- Why politicians ignore economists on austerity
by Mainly Macro in Mainly Macro on 2013-03-04 20:52:00
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"Faut-il des règles de politiques budgétaires ?,"
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info:hdl:2441/eo6779thqgm, Sciences Po.
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- Flodén, Martin, 2013.
"A role model for the conduct of fiscal policy? Experiences from Sweden,"
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- World Bank, 2013. "World Development Report 2014 : Risk and Opportunity—Managing Risk for Development," World Bank Publications, The World Bank, number 16092, March.
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