Fiscal Rules in a Volatile World : A Welfare-Based Approach /

It is widely agreed that a fiscal rule should boost discipline and credibility, reduce macroeconomic volatility, and be easily understood. To support such goals, a government may run structural surpluses and accumulate a precautionary cushion of assets on behalf of agents who do not enjoy access to...

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Bibliografische gegevens
Hoofdauteur: Restrepo, Jorge
Andere auteurs: Garcia, Carlos, Tanner, Evan
Formaat: Tijdschrift
Taal:English
Gepubliceerd in: Washington, D.C. : International Monetary Fund, 2011.
Reeks:IMF Working Papers; Working Paper ; No. 2011/056
Online toegang:Full text available on IMF
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245 1 0 |a Fiscal Rules in a Volatile World :   |b A Welfare-Based Approach /  |c Jorge Restrepo, Carlos Garcia, Evan Tanner. 
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520 3 |a It is widely agreed that a fiscal rule should boost discipline and credibility, reduce macroeconomic volatility, and be easily understood. To support such goals, a government may run structural surpluses and accumulate a precautionary cushion of assets on behalf of agents who do not enjoy access to capital markets. As an additional criterion, that level of assets should be bounded. We provide an example of a structural surplus rule that satisfies all such criteria. In our general equilibrium simulations, we show that such a rule benefits credit-constrained consumers but may hurt others. 
538 |a Mode of access: Internet 
700 1 |a Garcia, Carlos. 
700 1 |a Tanner, Evan. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2011/056 
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