Toward a Robust Fiscal Framework for Iceland: Motivation and Practical Suggestions

Absorption Boom and Fiscal Stance: What Lies Ahead in Eastern Europe?

“…Others have used regressions to estimate the relationship between real growth in a fiscal variable and real GDP growth (Lane 2003;Woo, 2005;Annett, 2007;Thornton, 2008;Ilzetzki and Vegh, 2008). The most common specification to estimate cyclicality in the empirical literature has been to use the real value of a fiscal variable as the dependent variable and real output as independent variable.…”

Romania: Selected Issues

“…The combination of Romania's fragmented politics with weak fiscal institutions provides particularly fertile ground for undesirable fiscal outcomes. The literature on the relation between a country's fiscal institutions and its fiscal outcomes shows that strong institutions are even more important in countries where political powers are dispersed among different parties in the government, disputes between the government and Parliament over fiscal issues are frequent, and political systems lead to unstable coalitions and frequent elections (Roubini and Sachs, 1989;Annett, 2007). The relative instability of Romania's politics is therefore another strong argument for building fiscal institutions that can provide pushback against political biases.…”