Advertisement
Promo

Enterprise applications Toolkit

Download now

Deficit Limits, Budget Rules, and Fiscal Policy

PublisherInternational Monetary Fund
Format538.1KB PDFDate added01 Jun 2005
Topics Financial Management, Performance Budgeting and Management
Downloads67

The paper presents a simple model for discussing the effects of deficit limits and budget rules on fiscal policy. It is found that limits on deficit-output ratios provide incentives to implement procyclical policies when the economy is in intermediate states, and countercyclical policies only in very "good" and very "bad" economic times. As a result, fiscal "reaction functions" are not monotonically related to the state of the economy. Deficit limits are found to exert discipline only provided the limit is tight and the expected sanction large, albeit at a relatively large welfare cost.

Download now

Did you find this white paper useful?
22 out of 50 users found this white paper useful


  • Trackback
  • Clip Link

Related white papers

True SaaS in Capital Markets

IT services has been one of the greatest victims of the current economic downturn. Both customers and vendors are struggling to create new engagement models that deliver tangible returns to...


At the Forefront of Multi-Channel Banking

The Woolwich is the first U.K. financial institution to provide interactive mobile banking services via WAP technology and the only bank with true channel integration across branches, telephone, Internet, WAP...


Meeting Core Challenges for Government IT in 2009

Join industry experts from featured analyst firm, Gartner, Inc., and opinion leaders from CA, as they examine Project Portfolio Management and the investment strategies that will help you overcome the...


Low Administration ROI Tool

Find out why thousands of customers rely on IBM Informix Dynamic Server to minimize administration time and cost - and how this savings can add up big! Use the IDS...


Crime In Focus : A paper examining pitfalls in public crime mapping

In July 2008, UK Home Secretary Jacqui Smith pledged that interactive maps, which allow every neighbourhood in England and Wales to access local crime information, were to be put in place by every...


Don't make do, do more with IT optimization.

Small to medium-sized businesses often find themselves forced to do more with fewer resources. IT optimization strategies such as consolidation and virtualization help reduce complexity, free up resources and support...


Zen and the Art of the Balanced Scorecard

Today the use of balanced scorecards for performance management has become a hallmark of a well-run company. A recent study by Cranfield University showed that more than 50 percent...


Broadband Deals? Powered by Top 10 Broadband

150+ broadband packages

Compare 30+ mobile broadband deals

Mobile Broadband »
White Paper

Featured White Paper

Product Overview: IBMXIV Storage System

The IBMXIV® Storage System is a revolutionary high-end open disk system designed to support key current and future business require-ments for a highly available information infrastructure. Its design is a grid of standard Intel®/Linux® components, connected in any-to-anytopology using Gigabit Ethernet. This groundbreaking architecture provides ...

Download Now

Other White Papers

HP print solutions and 3M

the objective for 3M was to optimize office printing infrastructure at 3M locations worldwide...

IBM XIV® Storage System: Thin Provisioning Reinvented

Managing IT storage infrastructure is an endless balancing act of providing enterprise-class...

See All White Papers


Skip Sub Navigation Links to CNET Brand Links

Help

Become part of the ZDNet community.

Newsletters