Open AccessFiscal issues in post-communist economies: a pragmatic and aggressive fiscal rule
Author(s) -
Bruno S. Sergi
Publication year - 1999
Publication title -
prague economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.233
H-Index - 17
eISSN - 2336-730X
pISSN - 1210-0455
DOI - 10.18267/j.pep.37
Subject(s) - fiscal policy , economics , fiscal union , debt , government (linguistics) , deficit spending , macroeconomics , government debt , economy , economic policy , economic system , linguistics , philosophy
This paper illustrates why a tough fiscal policy in East Europe may be rethought. Western economic policy theories may be fashionable but sometimes fail when applied to transition economies. It is advanced a new proposal for guiding fiscal policy where top priority is given to the ratio government debt/GDP and not to implement a tough deficit policy. Selected transition economies have low debt, then a more pragmatic economic strategy combined with a feasible and wise budget rule on fiscal policy may build up a scenario of economic recovery and sustainable membership in a perspective enlarged European Union.