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

Expenditure in Iceland, especially related to the government wage bill, has tended to move in a procyclical manner, related to the fragmentation of political decision making. Iceland's elevated macroeconomic volatility reinforces these tendencies, as large booms unleash greater fiscal pressures...

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Bibliographic Details
Main Author: Anthony M Annett
Format: Report
Language:unknown
Subjects:
Iceland
Online Access:http://www.imf.org/external/pubs/cat/longres.aspx?sk=21360
id ftrepec:oai:RePEc:imf:imfwpa:07/235
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spelling ftrepec:oai:RePEc:imf:imfwpa:07/235 2024-04-14T08:13:22+00:00 Toward a Robust Fiscal Framework for Iceland; Motivation and Practical Suggestions Anthony M Annett http://www.imf.org/external/pubs/cat/longres.aspx?sk=21360 unknown http://www.imf.org/external/pubs/cat/longres.aspx?sk=21360 preprint ftrepec 2024-03-19T10:25:06Z Expenditure in Iceland, especially related to the government wage bill, has tended to move in a procyclical manner, related to the fragmentation of political decision making. Iceland's elevated macroeconomic volatility reinforces these tendencies, as large booms unleash greater fiscal pressures as well as procyclical revenue elasticities that magnify these underlying strains. To improve its fiscal framework, Iceland could look to the experience of countries like Belgium and the Netherlands. In particular, it could adopt binding nominal expenditure rules, independent forecasts, and use representative committees to lay out medium-term targets across different levels of government. Finland;Fiscal policy;Government expenditures;Iceland;Political economy;procyclicality, expenditure, total expenditure, fiscal rules, fiscal framework Report Iceland RePEc (Research Papers in Economics)
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collection RePEc (Research Papers in Economics)
op_collection_id ftrepec
language unknown
description Expenditure in Iceland, especially related to the government wage bill, has tended to move in a procyclical manner, related to the fragmentation of political decision making. Iceland's elevated macroeconomic volatility reinforces these tendencies, as large booms unleash greater fiscal pressures as well as procyclical revenue elasticities that magnify these underlying strains. To improve its fiscal framework, Iceland could look to the experience of countries like Belgium and the Netherlands. In particular, it could adopt binding nominal expenditure rules, independent forecasts, and use representative committees to lay out medium-term targets across different levels of government. Finland;Fiscal policy;Government expenditures;Iceland;Political economy;procyclicality, expenditure, total expenditure, fiscal rules, fiscal framework
format Report
author Anthony M Annett
spellingShingle Anthony M Annett
Toward a Robust Fiscal Framework for Iceland; Motivation and Practical Suggestions
author_facet Anthony M Annett
author_sort Anthony M Annett
title Toward a Robust Fiscal Framework for Iceland; Motivation and Practical Suggestions
title_short Toward a Robust Fiscal Framework for Iceland; Motivation and Practical Suggestions
title_full Toward a Robust Fiscal Framework for Iceland; Motivation and Practical Suggestions
title_fullStr Toward a Robust Fiscal Framework for Iceland; Motivation and Practical Suggestions
title_full_unstemmed Toward a Robust Fiscal Framework for Iceland; Motivation and Practical Suggestions
title_sort toward a robust fiscal framework for iceland; motivation and practical suggestions
url http://www.imf.org/external/pubs/cat/longres.aspx?sk=21360
genre Iceland
genre_facet Iceland
op_relation http://www.imf.org/external/pubs/cat/longres.aspx?sk=21360
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