Considering the IMF's Perspective on a "Sound Fiscal Policy"

July 1, 2002

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Peter S. Heller Considering the IMF's Perspective on a "Sound Fiscal Policy", (USA: International Monetary Fund, 2002) accessed December 23, 2024

Disclaimer: This Policy Dicussion Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper provides a perspective on how the IMF assesses a “sound fiscal policy,” focusing principally on industrial and emerging market economies. It observes six central criteria: the short-term fiscal policy stance, with greater emphasis on automatic stabilizers than discretionary fiscal policy; relevance of medium- and sometimes long-term issues; fiscal sustainability; capacity for aggregate fiscal policy implementation (including political economy factors); structural content of fiscal policy (tax efficiency and public expenditure quality); and institutional, governance, and process issues associated with budget implementation and revenue collection. Greater emphasis could be placed on an adequate margin to deal with uncertain long-term challenges.

Subject: Expenditure, Fiscal policy, Fiscal stance, Fiscal sustainability, Public debt

Keywords: Country authorities, Fiscal Policy, Fiscal stance, Fiscal sustainability, Global, IMF assessment, IMF consultation mission report, IMF economist, IMF mission, IMF staff, IMF urge government, IMF's perspective, International Monetary Fund, PDP

Publication Details

Pages:

28
Volume:

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DOI:

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Issue:

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Series:

Policy Discussion Paper No. 2002/008
Stock No:

PPIEA0082002
ISBN:

9781451971019
ISSN:

1564-5193

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