A Simple Fiscal Rule for Hungary

András Balatoni ()
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András Balatoni: ING Commercial Bank, N.V. Hungary Branch, Financial Market Research

Acta Oeconomica, 2015, vol. 65, issue supplement1, 149-159

Abstract: In this paper, I outline an alternative public debt rule, a basic structure that provides a sufficient reduction of public debt in the long term, with an escape clause ensuring the opportunity for countercyclical budgetary manoeuvring and the avoidance of the so-called ratchet effect. The last section outlines a basic institutional framework. I have raised this topic in the hope of supporting the Hungarian discussion about fiscal rules and perhaps to contribute to it. I am certain that this rule is far from perfect, but I believe it is a good starting point.

Keywords: fiscal policy; fiscal rules; debt; deficit; demand management; Hungary (search for similar items in EconPapers)
JEL-codes: E32 E61 E62 (search for similar items in EconPapers)
Date: 2015
Note: The author is grateful to Csaba G. Tóth for his invaluable comments and remarks. I thank to András Hinkel for research assistance. All the reminder failures and mistakes are the responsibility of the author.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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