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Fiscal Councils (Beetsma & Debrun)

Fiscal Councils: Rationale and effectiveness by Roel M. W. J. Beetsma and Xavier Debrun published by IMF indicated by Alvaro Manoel (4/2016). “The paper discusses the effectiveness of independent fiscal institutions – or fiscal councils – in taming the deficit bias that emerged in the 1970s. After a review of the main theoretical arguments and recent trends abount fiscal councils, we develop a stylized model showing how a fiscal council can effectively mitigate the deficit bias even though it has no direct lever on the conduct of fiscal policy…”

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