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Numerical fiscal rules in practice

Author

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  • Vasilios Manesiotis

    (Bank of Greece)

Abstract

Despite four year of unprecedented fiscal consolidation efforts, Greece does not yet have (national) numerical fiscal rules, which could help contain primary expenditure and anchor expectations about public finances in Greece. This paper examines practical aspects associated with the implementation of such rules. Issues including what categories of expenditure should be subject to the rule, how inflation is dealt with, how expenditure categories which fluctuate significantly across the cycle are treated and the extent to which the rule should apply to future years are all examined. Additionally, there is a discussion of how revenue projections and the targeted fiscal balance are used to determine the expenditure ceiling. Finally, the paper analyses how “indirect rules”, such as the “debt brake”, can operate as effective expenditure rules.

Suggested Citation

  • Vasilios Manesiotis, 2011. "Numerical fiscal rules in practice," Economic Bulletin, Bank of Greece, issue 35, pages 7-13, June.
    • Handle: RePEc:bog:econbl:y:2011:i:35:p:7-13
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    File URL: https://www.bankofgreece.gr/BogEkdoseis/econbull201106.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Costas N. Kanellopoulos, 2012. "The Size and structure of uninsured employment," Economic Bulletin, Bank of Greece, issue 37, pages 23-41, December.
    2. Styliani Belli & Constantina Backinezos, 2016. "The transition to the new methodology for the compilation of balance of payments statistics – BPM6," Economic Bulletin, Bank of Greece, issue 43, pages 19-29, July.
    3. repec:bog:econbl:y:2016:i:43:p:19-29 is not listed on IDEAS
    4. Dimitra Dimitropoulou & Anastasia Koutsomanoli-Filippaki & Evangelos Charalambakis & Georgios Aggelis, 2014. "The financing of Greek enterprises before and during the crisis," Economic Bulletin, Bank of Greece, issue 39, pages 7-20, July.
    5. Christos Papazoglou & Dimitrios Sideris & Orestis Tsagklas, 2016. "Europe as an optimum currency area: the experience of the Baltic countries," Economic Bulletin, Bank of Greece, issue 44, pages 35-46, December.
    6. repec:bog:econbl:y:2016:i:43:p:55-75 is not listed on IDEAS
    7. Costas N. Kanellopoulos, 2012. "Employment and worker flows during the financial crisis," Economic Bulletin, Bank of Greece, issue 36, pages 31-41, April.
    8. Sofia Lazaretou, 2015. "How can the use of historical macroeconomic data series support economic analysis and policy-making? The new Greek macro history database 1833-1949 as part of the large database of Southeastern Europe," Economic Bulletin, Bank of Greece, issue 41, pages 71-101, July.
    9. Costas N. Kanellopoulos, 2014. "The private sector Greek labour market during the crisis," Economic Bulletin, Bank of Greece, issue 39, pages 21-36, July.
    10. Sofia Anyfantaki, 2016. "The evolution of financial technology (FinTech)," Economic Bulletin, Bank of Greece, issue 44, pages 47-62, December.
    11. Faidon Kalfaoglou, 2016. "Bank recapitalisation: a necessary but not sufficient condition for resuming lending," Economic Bulletin, Bank of Greece, issue 43, pages 55-75, July.
    12. Nikos Vettas & Ioannis Giotopoulos & Evangelia Valavanioti & Svetoslav Danchev, 2016. "The determinants of new firms’ export performance," Economic Bulletin, Bank of Greece, issue 43, pages 7-17, July.
    13. Faidon Kalfaoglou, 2015. "Alternative approaches to NPLs resolution. Case studies," Economic Bulletin, Bank of Greece, issue 41, pages 45-70, July.
    14. Evangelia Georgiou, 2015. "The use of cash and electronic payment instruments in the economy," Economic Bulletin, Bank of Greece, issue 41, pages 31-44, July.
    15. Zacharias Bragoudakis & Dimitrios Sideris, 2012. "Do retail gasoline prices adjust symmetrically to crude oil price changes? the case of the Greek oil market," Economic Bulletin, Bank of Greece, issue 37, pages 7-21, December.
    16. Sophia Lazaretou, 2014. "The smart economy: cultural and creative industries in Greece: can they be a way out of the crisis?," Economic Bulletin, Bank of Greece, issue 39, pages 73-103, July.
    17. repec:bog:econbl:y:2016:i:43:p:31-53 is not listed on IDEAS
    18. Konstantina Manou & Evangelia Papapetrou, 2016. "The economic behaviour of households in Greece: recent developments and prospects," Economic Bulletin, Bank of Greece, issue 44, pages 7-33, December.
    19. Ioannis Chatzivasiloglou, 2016. "Introduction to solvency ii of (re)insurance undertakings," Economic Bulletin, Bank of Greece, issue 44, pages 63-103, December.
    20. Costas N. Kanellopoulos, 2015. "The effects of minimum wages on wages and employment," Economic Bulletin, Bank of Greece, issue 41, pages 7-29, July.
    21. Sophia Lazaretou, 2016. "The Greek brain drain: the new pattern of Greek emigration during the recent crisis," Economic Bulletin, Bank of Greece, issue 43, pages 31-53, July.
    22. Petros M. Migiakis, 2012. "Reviewing the proposals for common bond issuances by the euro-area sovereign under a long-term perspective," Economic Bulletin, Bank of Greece, issue 37, pages 43-54, December.
    23. repec:bog:econbl:y:2016:i:43:p:7-17 is not listed on IDEAS
    24. Aikaterini Chaireti, 2014. "The housing situation of residents of Greece in the time of crisis 2008-2012," Economic Bulletin, Bank of Greece, issue 39, pages 105-141, July.
    25. Faidon Kalfaoglou, 2014. "European banking union: “Europeanising” banks’ financial safety net," Economic Bulletin, Bank of Greece, issue 39, pages 37-72, July.

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    More about this item

    Keywords

    numerical fiscal rules;

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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