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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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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RePEc (Research Papers in Economics) |
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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 |
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Iceland |
genre_facet |
Iceland |
op_relation |
http://www.imf.org/external/pubs/cat/longres.aspx?sk=21360 |
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1796311337418096640 |