Fiscal Rule x Israel (Debrun, Epstein & Symansky)

A new fiscal rule: should Israel “Go Swiss?” by Xavier Debrun, Natan Epstein and Steven Symansky, published by IMF. The public debt ratio of the Israel remains high by international standards and is vulnerable to adverse shocks. This paper discusses various rules that could help build on the recent success in moving toward a more intertemporally consistent fiscal policy…they propose a new fiscal rule that is anchored on a feasible objective of lowering Israel’s public debt to 60 percent of GDP by 2015 and fiscal rule would be flexible with respect to uncertainty about the business cycle and exogenous shocks… http://migre.me/16gPP