Excerpt: Fiscal Politics

Abstract

Economics and politics are closely intertwined. Do elections influence budgetary policies? Is political fragmentation associated with the degree of fiscal discipline? What is the role of political ideology? If politics affects fiscal outcomes, can fiscal rules and institutions make a difference?This volume looks at how politics affects fiscal policies. Two main themes stand out: (1) politics can distort fiscal policy through elections and political divisions, and (2) rules and institutions can keep this dynamic under control. The book presents empirical evidence from advanced and emerging market economies and developing countries. It also examines the relevance of deeper political, historical, and institutional forces that influence the budget at the national and international levels. The book includes chapters by IMF staff members, academics, policymakers, and researchers focusing on this complex subject. Their contributions help improve our understanding by offering new perspectives and looking at past findings.This excerpt is taken from uncorrected page proofs. Please check quotations and attributions against the published volume.