Indicators of government activity must be carefully designed to be relevant, credible and accountable. Frustration with reform pressures suggests that measures of policy activity are not providing accurate information. In fact, indicators of product or labour market regulation fail to measure...

The significant role of government consumption in affecting economic conditions raises the necessity for monetary policy to take into account the behaviour of fiscal policy and to also take into account how the presence of the fiscal sector might affect the transmission mechanism of monetary...