IDEAS home Printed from https://ideas.repec.org/a/taf/nzecpp/vv47y2013i1p71-94.html
   My bibliography  Save this article

Making fiscal policy more stabilising in the next upturn: Challenges and policy options

Author

Listed:
  • Anne-Marie Brook

Abstract

While New Zealand's fiscal framework has been relatively successful overall, this paper suggests that it gives insufficient emphasis to macro stabilisation during upturns in the business cycle, especially once the debt target has been met. Options for making fiscal policy ‘more stabilising’ in future economic upturns include: revising the Public Finance Act so as to increase the importance that is placed on avoiding pro-cyclical fiscal policy; more focus on sticking to ex-ante spending plans; or a stabilisation fund to safeguard revenue windfalls until the following downturn. The potential role of an independent fiscal council is also touched upon.

Suggested Citation

  • Anne-Marie Brook, 2013. "Making fiscal policy more stabilising in the next upturn: Challenges and policy options," New Zealand Economic Papers, Taylor & Francis Journals, vol. 47(1), pages 71-94, April.
    • Handle: RePEc:taf:nzecpp:vv:47:y:2013:i:1:p:71-94
    DOI: 10.1080/00779954.2012.721691
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00779954.2012.721691
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00779954.2012.721691?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. International Monetary Fund, 2012. "Bolivia: Staff Report for the 2012 Article IV Consultation," IMF Staff Country Reports 2012/149, International Monetary Fund.
    2. Philip Lane, 2010. "Some Lessons for Fiscal Policy from the Financial Crisis," The Institute for International Integration Studies Discussion Paper Series iiisdp334, IIIS.
    3. Teresa Ter-Minassian, 2011. "Should Latin American countries adopt structural balance-based fiscal rules?," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 49(2), pages 115-143, Diciembre.
    4. International Monetary Fund, 2012. "Cameroon: Staff Report for the 2012 Article IV Consultation," IMF Staff Country Reports 2012/237, International Monetary Fund.
    5. International Monetary Fund, 2012. "Jordan: Staff Report for the 2012 Article IV Consultation," IMF Staff Country Reports 2012/119, International Monetary Fund.
    6. International Monetary Fund, 2012. "Japan: Staff Report for the 2012 Article IV Consultation," IMF Staff Country Reports 2012/208, International Monetary Fund.
    7. International Monetary Fund, 2010. "Peru: Staff Report for the 2010 Article IV Consultation," IMF Staff Country Reports 2010/098, International Monetary Fund.
    8. International Monetary Fund, 2012. "Republic of Poland: Staff Report for the 2012 Article IV Consultation," IMF Staff Country Reports 2012/162, International Monetary Fund.
    9. International Monetary Fund, 2012. "Suriname: Staff Report for the 2012 Article IV Consultation," IMF Staff Country Reports 2012/281, International Monetary Fund.
    10. International Monetary Fund, 2012. "Indonesia: Staff Report for the 2012 Article IV Consultation," IMF Staff Country Reports 2012/277, International Monetary Fund.
    11. Boyce, Gordon, 2007. "Innovation + Independence: The Reserve Bank of New Zealand, 1973–2002. By John Singleton with Arthur Grimes, Gary Hawke, and Frank Holmes. Auckland: University of Auckland Press, 2006. xii + 340 pp.," Business History Review, Cambridge University Press, vol. 81(1), pages 204-206, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert A Buckle & Amy A Cruickshank, 2013. "The Requirements for Long-Run Fiscal Sustainability," Treasury Working Paper Series 13/20, New Zealand Treasury.
    2. Lees, Kirdan, 2013. "Fighting fit? Assessing New Zealand’s fiscal sustainability," NZIER Working Paper 2013/5, New Zealand Institute of Economic Research.
    3. Rebecca Williams, 2017. "Characterising the current economic expansion: 2009 to present day," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 80, pages 1-22, June.
    4. Buckle, Robert A., 2018. "A quarter of a century of fiscal responsibility: The origins and evolution of fiscal policy governance and institutional arrangements in New Zealand, 1994 to 2018," Working Paper Series 20848, Victoria University of Wellington, Chair in Public Finance.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fabian Bornhorst & Mr. Ashoka Mody, 2012. "Tests of German Resilience," IMF Working Papers 2012/239, International Monetary Fund.
    2. Geraldine Dany-Knedlik & Juan Angel Garcia, 2018. "Monetary Policy and Inflation Dynamics in ASEAN Economies," IMF Working Papers 2018/147, International Monetary Fund.
    3. Bornhorst, Fabian & Mody, Ashoka, 2012. "Test of the German resilience," CFS Working Paper Series 2012/14, Center for Financial Studies (CFS).
    4. Elsa Fornero, 2015. "Economic-financial Literacy and (Sustainable) Pension Reforms: Why the Former is a Key Ingredient for the Latter," Bankers, Markets & Investors, ESKA Publishing, issue 134, pages 6-16, January-F.
    5. Abroskin A.S. (Аброскин, А.С.) & Abroskina N.A. (Аброскина, Н.А.), 2016. "Methods of Analysis of Shadow of Cross-Border Capital Flows [Методы Анализа Теневых Трансграничных Потоков Капитала]," Working Papers 2134, Russian Presidential Academy of National Economy and Public Administration.
    6. Joseph E. Gagnon & C. Fred Bergsten, 2012. "Currency Manipulation, the US Economy, and the Global Economic Order," Policy Briefs PB12-25, Peterson Institute for International Economics.
    7. International Monetary Fund, 2012. "Liberia: 2012 Article IV Consultation," IMF Staff Country Reports 2012/340, International Monetary Fund.
    8. Samer Matta & Simon Appleton & Michael Bleaney, 2019. "The Impact of the Arab Spring on the Tunisian Economy," The World Bank Economic Review, World Bank, vol. 33(1), pages 231-258.
    9. Kabbashi M. Suliman, 2016. "The Political Economy of Fiscal Institutions and Macroeconomic Management in Sudan," Working Papers 1044, Economic Research Forum, revised 09 Jan 2016.
    10. Ms. Anja Baum & Mr. Marcos Poplawski Ribeiro & Miss Anke Weber, 2012. "Fiscal Multipliers and the State of the Economy," IMF Working Papers 2012/286, International Monetary Fund.
    11. International Monetary Fund, 2014. "Finland: Selected Issues," IMF Staff Country Reports 2014/140, International Monetary Fund.
    12. Ian Davidoff & Andrew Leigh, 2013. "How Do Stamp Duties Affect the Housing Market?," The Economic Record, The Economic Society of Australia, vol. 89(286), pages 396-410, September.
    13. Rožāns Edgars, 2016. "The Benchmarking Practices of the Economically Freest Countries in Europe and the World," Ekonomika (Economics), Sciendo, vol. 95(2), pages 73-97, February.
    14. Ricardo Hausmann & Tim O'Brien & Miguel Angel Santos & Ana Grisanti & Jorge Tapia, 2019. "Jordan: The Elements of a Growth Strategy," CID Working Papers 346, Center for International Development at Harvard University.
    15. Luigi Bonatti & Andrea Fracasso, 2013. "The German Model and the European Crisis," Journal of Common Market Studies, Wiley Blackwell, vol. 51(6), pages 1023-1039, November.
    16. Somil Nagpal & Susan Opper, 2013. "Kingdom of Bhutan Human Development Public Expenditure Review," World Bank Publications - Reports 26378, The World Bank Group.
    17. Thorsten Schulten & Torsten Müller, 2013. "Ein neuer europäischer Interventionismus? Die Auswirkungen des neuen Systems der europäischen Economic Governance auf Löhne und Tarifpolitik," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 39(3), pages 291-321.
    18. Abroskin A.S. (Аброскин, А.С.) & Abroskina N.A. (Аброскина, Н.А.), 2016. "Shadow Cross-Border Capital Flows: Contemporary Concepts, Principles and Information Base of Accounting and Measurement [Теневые Трансграничные Потоки Капитала: Современные Концепции, Принципы И Ин," Working Papers 2135, Russian Presidential Academy of National Economy and Public Administration.
    19. Mr. David J Hofman & Mr. Marcos d Chamon & Mr. Pragyan Deb & Mr. Thomas Harjes & Umang Rawat & Itaru Yamamoto, 2020. "Intervention Under Inflation Targeting--When Could It Make Sense?," IMF Working Papers 2020/009, International Monetary Fund.
    20. Arce, Fernando, 2021. "Private Overborrowing under Sovereign Risk," MPRA Paper 113176, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:nzecpp:vv:47:y:2013:i:1:p:71-94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://www.tandfonline.com/RNZP20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.