Fiscal Rules in Times of Crisis

Fiscal Rules in Times of Crisis

As governments around the world struggle to piece together the most effective fiscal response to counter the economic and social impact of the COVID-19 outbreak, some are facing constraints imposed by fiscal rules enacted in the past to ensure fisc...

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Main Author: Bandaogo, Mahama Samir
Format: Policy Note
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
CORONAVIRUS
COVID-19
PANDEMIC RESPONSE
FISCAL RULES
FISCAL POLICY
BUSINESS CYCLE
ESCAPE CLAUSE
ECONOMIC CRISIS
Online Access:http://documents.worldbank.org/curated/en/929971594958133343/Fiscal-Rules-in-Times-of-Crisis
http://hdl.handle.net/10986/34217
id okr-10986-34217
recordtype oai_dc
spelling okr-10986-342172021-05-25T09:48:20Z Fiscal Rules in Times of Crisis Bandaogo, Mahama Samir CORONAVIRUS COVID-19 PANDEMIC RESPONSE FISCAL RULES FISCAL POLICY BUSINESS CYCLE ESCAPE CLAUSE ECONOMIC CRISIS As governments around the world struggle to piece together the most effective fiscal response to counter the economic and social impact of the COVID-19 outbreak, some are facing constraints imposed by fiscal rules enacted in the past to ensure fiscal discipline. The outbreak has revealedthe weaknesses and inappropriateness of many existing fiscal rules, and authorities should take the opportunity to strengthen their fiscal rules by adopting features that make them more flexible, operational, and enforceable. Research shows that the de facto strength and credibility of the fiscal rule is what matters for fiscal discipline, not the mere de jure existence of one. As important as it is that fiscal rules include contingencies to accommodate large and effective fiscal responses to severe and unprecedented crises, it is also as important that fiscal rules provide clear guidance for building up savings in times of positive shocks. 2020-07-27T19:18:16Z 2020-07-27T19:18:16Z 2020-07-16 Policy Note http://documents.worldbank.org/curated/en/929971594958133343/Fiscal-Rules-in-Times-of-Crisis http://hdl.handle.net/10986/34217 English Research and Policy Brief;No.. 36 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic CORONAVIRUS
COVID-19
PANDEMIC RESPONSE
FISCAL RULES
FISCAL POLICY
BUSINESS CYCLE
ESCAPE CLAUSE
ECONOMIC CRISIS
spellingShingle CORONAVIRUS
COVID-19
PANDEMIC RESPONSE
FISCAL RULES
FISCAL POLICY
BUSINESS CYCLE
ESCAPE CLAUSE
ECONOMIC CRISIS
Bandaogo, Mahama Samir
Fiscal Rules in Times of Crisis
relation Research and Policy Brief;No.. 36
description As governments around the world struggle to piece together the most effective fiscal response to counter the economic and social impact of the COVID-19 outbreak, some are facing constraints imposed by fiscal rules enacted in the past to ensure fiscal discipline. The outbreak has revealedthe weaknesses and inappropriateness of many existing fiscal rules, and authorities should take the opportunity to strengthen their fiscal rules by adopting features that make them more flexible, operational, and enforceable. Research shows that the de facto strength and credibility of the fiscal rule is what matters for fiscal discipline, not the mere de jure existence of one. As important as it is that fiscal rules include contingencies to accommodate large and effective fiscal responses to severe and unprecedented crises, it is also as important that fiscal rules provide clear guidance for building up savings in times of positive shocks.
format Policy Note
author Bandaogo, Mahama Samir
author_facet Bandaogo, Mahama Samir
author_sort Bandaogo, Mahama Samir
title Fiscal Rules in Times of Crisis
title_short Fiscal Rules in Times of Crisis
title_full Fiscal Rules in Times of Crisis
title_fullStr Fiscal Rules in Times of Crisis
title_full_unstemmed Fiscal Rules in Times of Crisis
title_sort fiscal rules in times of crisis
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/929971594958133343/Fiscal-Rules-in-Times-of-Crisis
http://hdl.handle.net/10986/34217
_version_ 1764480432576921600

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