Simple, Implementable Fiscal Policy Rules /

This paper analyzes the scope for systematic rules-based fiscal activism in open economies. Relative to a balanced budget rule, automatic stabilizers significantly improve welfare. But they minimize fiscal instrument volatility rather than business cycle volatility. A more aggressively countercyclic...

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Bibliographic Details
Main Author: Kumhof, Michael
Other Authors: Laxton, Douglas
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2009.
Series:IMF Working Papers; Working Paper ; No. 2009/076
Online Access:Full text available on IMF