Publication detail

Fiscal Policy: Too Political?

Author(s): doc. Ing. Ondřej Schneider MPhil., Ph.D., Petr Hedbavny
Type: Articles in journals with impact factor
Year: 2003
Number: 0
ISSN / ISBN: ISSN: 0015-1920
Published in: Finance a úvěr-Czech Journal of Economics and Finance
Publishing place: Prague
JEL codes:
Suggested Citation:
Grants: IES Research Framework (1999-2004) "The Czech Economy in the Context of European Integration and Globalization"
Abstract: The paper provides an analysis of the role of fiscal rules. The authors first provide a rationale for the existence of fiscal rules, namely to avoid a governmental bias toward budget deficits. The paper then surveys existing fiscal rules and analyzes their applicability in the context of the Czech Republic. The authors argue that the institutional arrangement of fiscal policy should mirror the arrangement that has emerged as regards monetary policy, namely a certain separation of powers in which an independent body would be responsible for setting the overall budget deficit level. In the case of the Czech Republic, the authors argue that the country needs a simple and transparent fiscal rule rather than a more sophisticated and seemingly more appropriate rule.
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