Rules-Based Fiscal Policy in Emerging Markets Background, Analysis and Prospects

by Kopits, George

• ISBN13: 9781403920850
• ISBN10: 1403920850
• Format: Hardcover
• Copyright: 2004-11-27
• Publisher: Palgrave Macmillan

Summary

Inspired by the experience of some advanced economies, a number of emerging market economies have recently adopted rules limiting the budget deficit, expenditure level, or indebtedness of the public sector, while others consider them for eventual adoption. This volume brings together policy analysts to discuss the rationale, suitability, and usefulness of fiscal policy rules in emerging market economies. Grouped under three main parts (political economy and macroeconomic setting; design issues at the national level; design issues at the subnational level), the chapters have a practical orientation, based on conceptual grounding.

Author Biography

George Kopits is Assistant Director of the fiscal affairs department at the International Monetary Fund.

Table of Contents

List of Tables	vii
List of Figures and Box	ix
List of Contributors	x
Acknowledgments	xi
Foreword	xii
1 Overview of Fiscal Policy Rules in Emerging Markets	1	(12)
George Kopits
Part I Political Economy and Macroeconomic Setting	13	(82)
2 Fiscal Rules from a Political Economy Perspective	15	(15)
Allan Drazen
3 Good Credit Ratios, Bad Credit Ratings: The Role of Debt Structure	30	(23)
Ricardo Hausmann
4 Can Fiscal Rules Help Reduce Macroeconomic Volatility?	53	(13)
Guillermo Perry
5 Fiscal Policy and High Capital Mobility	66	(15)
George Kopits
6 Fiscal Institutions versus Political Will	81	(16)
Allen Schick
Part II Design Issues at the National Level	95	(86)
7 EMU Fiscal Rules: What Can and Cannot be Exported	97	(17)
Marco Buti and Gabriele Giudice
8 Fiscal Rules and Debt Sustainability in Brazil	114	(17)
Ilan Goldfajn and Eduardo Refinetti Guardia
9 Fiscal Rules in Mexico: Evolution and Prospects	131	(15)
Andrés Conesa, Moisés J. Schwartz, Alejandro Somuano, and J. Alfredo Tijerina
10 Fiscal Rules on the Road to an Enlarged European Union	146	(18)
Fabrizio Coricelli and Valerio Ercolani
11 Fiscal Rules for Economies with Nonrenewable Resources: Norway and Venezuela	164	(17)
Olav Bjerkholt and Irene Niculescu
Part III Design Issues at the Subnational Level	181	(69)
12 Subnational Fiscal Rules: A Game Theoretic Approach	183	(15)
Miguel Braun and Mariano Tommasi
13 Rules-Based Adjustment in a Highly Decentralized Context: The Case of India	198	(21)
Kalpana Kochhar and Catriona Purfeld
14 Fiscal Rules for Subnational Governments: Lessons from the EMU	219	(16)
Fabrizio Balassone, Daniele Franco, and Stefania Zotteri
15 Rules for Stabilizing Intergovernmental Transfers in Latin America	235	(15)
Christian Y. Gonzalez, David Rosenblatt, and Steven B. Webb
References	250	(18)
Author Index	268	(3)
Subject Index	271