Simple, implementable fiscal policy rules / prepared by Michael Kumhof and Douglas Laxton.

This paper analyzes the scope for systematic rules-based fiscal activism in open economies. Relative to a balanced budget rule, automatic stabilizers significantly improve welfare. But they minimize fiscal instrument volatility rather than business cycle volatility. A more aggressively countercyclic...

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Bibliographic Details

Online Access:	Full Text (via ProQuest)
Main Authors:	Kumhof, Michael (Author), Laxton, Douglas (Author)
Corporate Author:	International Monetary Fund. Research Department
Format:	eBook
Language:	English
Published:	[Washington, DC] : International Monetary Fund (IMF), ©2009.
Series:	IMF working paper ; WP/09/76.
Subjects:	Fiscal policy.