El carácter procíclico de la política fiscal: notas sobre la ley de prudencia y transparencia fiscal
This paper is aimed to describe the basic limitations of the current fiscal responsibility law to deal with the economic recession due to its pro cyclical character. Section 2 contains a theoretical model, which relates the aggregate demand to the pro cyclical fiscal rule. Two cases of static comparative analysis are developed in section 3: external shock and monetary policy shock; and the possibility of a fiscal and monetary policy mix to reactivate the economy is also analyzed. In section 4 contains the empirical evidence of the fiscal policy character in the last decade. Finally, a brief review on the application of the fiscal rules experiences is developed in the last section, and some changes on the law are suggested in order to make it more credible and efficient for public budget management.
Volume (Year): (2003)
Issue (Month): 51-52 ()
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