Restraining Yourself: The Implications of Fiscal Rules for Economic Stabilization
Tamim Bayoumi and
Barry Eichengreen ()
IMF Staff Papers, 1995, vol. 42, issue 1, 32-48
State budgets played a significant macroeconomic role in the United States during the 1970s and 1980s. Their cyclical responsiveness was affected by the severity of statutory and constitutional fiscal restraints. Moving from no fiscal restraints to stringent restraints lowered the fiscal offset to income fluctuations by roughly 40 percent. Simulations indicate that a reduction in aggregate fiscal stabilizers of this size could lead to a significant increase in the variance of aggregate output.
JEL-codes: E62 H61 H74 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (113) Track citations by RSS feed
Downloads: (external link)
http://www.jstor.org/stable/3867339?origin=pubexport main text (application/pdf)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:imfstp:v:42:y:1995:i:1:p:32-48
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2
Access Statistics for this article
More articles in IMF Staff Papers from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla ().