Are All Summary Indicators of the Stance of Fiscal Policy Misleading?
Two recent criticisms of summary fiscal indicators are appraised: first, that they and the conventionally measured public sector balances from which they are derived are not sufficiently broadly defined; second, that they are meaningless because they do not reflect changes in the distribution of wealth between generations. The paper concludes that the defects of summary fiscal indicators have been exaggerated. It is not feasible to include all changes in public sector net worth in the deficit, and the existence of liquidity constraints and aversion to indebtedness imply that conventionally measured public sector deficits are not irrelevant.
Year of publication: |
1989
|
---|---|
Authors: | Mackenzie, G. A. |
Published in: |
IMF Staff Papers. - Palgrave Macmillan, ISSN 1020-7635. - Vol. 36.1989, 4, p. 743-770
|
Publisher: |
Palgrave Macmillan |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
The Composition of Fiscal Adjustment and Growth : Lessons from Fiscal Reforms in Eight Economies
Mackenzie, G. A., (1997)
-
Mackenzie, G. A., (2002)
-
Quasi-Fiscal Operations of Public Financial Institutions
Mackenzie, G. A., (1996)
- More ...