IDEAS home Printed from https://ideas.repec.org/a/aic/jopafl/y2014vs1p44-49.html
   My bibliography  Save this article

The Imf Approach Towards The Structural Deficit

Author

Listed:
  • SORIN GABRIEL ANTON

    (Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, sorin.anton@uaic.ro, Iasi, Romania,)

  • CRISTINA PUIU

    (Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, puiu.cristina@yahoo.com, Iasi, Romania,)

Abstract

The aim of this paper is to assess the methodologies and techniques used by the International Monetary Fund in order to estimate the structural fiscal balance, which is crucial for evaluating fiscal sustainability. Ensuring fiscal discipline gained a major importance especially during the recent financial crisis. In the case of the Economic and Monetary Union in Europe the previous indicators were not enough to establishing an environment of fiscal discipline. Therefore, new limits regarding the structural deficit were imposed through the Treaty of Stability Coordination and Governance in the Economic and Monetary Union. However, experience shows that removing cyclical and other transitory elements from revenues and expenditure is not an easy task. This study will provide a clear understanding of the methodology used by the International Monetary Fund in order to quantify the structural deficit, its shortcomings, a comparison with the results obtained by the European Commission and recommendations. Furthermore, it will show that, despite the limits of the evaluating the structural fiscal balance, this represents the right indicator for stating where the economy is heading over the medium term.

Suggested Citation

  • Sorin Gabriel Anton & Cristina Puiu, 2014. "The Imf Approach Towards The Structural Deficit," Journal of Public Administration, Finance and Law, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 0(Special i), pages 44-49, September.
    • Handle: RePEc:aic:jopafl:y:2014:v:s1:p:44-49
    as

    Download full text from publisher

    File URL: http://www.jopafl.com/uploads/special-issue-1-2014/THE_IMF_APPROACH_TOWARDS_THE_STRUCTURAL_DEFICIT.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Laura dos Reis & Paolo Manasse & Ugo Panizza, 2007. "Targeting the Structural Balance," Research Department Publications 4507, Inter-American Development Bank, Research Department.
    2. International Monetary Fund, 2012. "Georgia: Request for a Stand-By Arrangement and an Arrangement Under the Stand-by Credit Facility: Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the," IMF Staff Country Reports 2012/098, International Monetary Fund.
    3. International Monetary Fund, 2012. "Ireland: Eighth Review Under the Extended Arrangement; Staff Report; Staff Supplements; and Press Release on the Executive Board discussion," IMF Staff Country Reports 2012/336, International Monetary Fund.
    4. International Monetary Fund, 2012. "Ireland: Sixth Review Under the Extended Arrangement: Staff Report; Staff Supplement; Press Release on the Executive Board Discussion," IMF Staff Country Reports 2012/147, International Monetary Fund.
    5. Laura dos Reis & Paolo Manasse & Ugo Panizza, 2007. "Targeting the Structural Balance," Research Department Publications 4507, Inter-American Development Bank, Research Department.
    6. Gilles Mourre & George-Marian Isbasoiu & Dario Paternoster & Matteo Salto, 2013. "The cyclically-adjusted budget balance used in the EU fiscal framework: an update," European Economy - Economic Papers 2008 - 2015 478, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    7. International Monetary Fund, 2011. "Kingdom of Netherlands: Netherlands: Selected Issues and Analytical Notes," IMF Staff Country Reports 2011/143, International Monetary Fund.
    8. International Monetary Fund, 2012. "Ireland: Fifth Review Under the Extended Arrangement: Staff Report; Staff Supplement; Press Release on the Executive Board Discussion," IMF Staff Country Reports 2012/048, International Monetary Fund.
    9. International Monetary Fund, 2012. "Romania: Fifth Review Under the Stand-By Arrangement: Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Romania," IMF Staff Country Reports 2012/157, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Russell, Helen & McGinnity, Fran & Kingston, Gillian, 2014. "Gender and the Quality of Work: From Boom to Recession," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT264.
    2. Gómez Sabaini, Juan Carlos & Jiménez, Juan Pablo, 2009. "The role of tax policy in the context of the crisis: possibilities and limitations," Documentos de Proyectos 4169, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    3. De Rosa, Donato & Iootty, Mariana & Pirlea, Florina & Aprahamian, Arabela & Stanescu, Alexandru, 2013. "Product market policies in Romania : a comparison with EU partners," Policy Research Working Paper Series 6698, The World Bank.
    4. Kacef, Osvaldo, 2009. "Crisis y políticas públicas en América Latina y el Caribe," Documentos de Proyectos 4164, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. Fanelli, José María & Jiménez, Juan Pablo, 2009. "Crisis, volatility and fiscal policy in Latin America," Documentos de Proyectos 4167, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. -, 2009. "Macroeconomic policies in times of crisis: options and perspectives," Documentos de Proyectos 3665, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    7. Ricardo Reis, 2015. "Looking for a Success in the Euro Crisis Adjustment Programs: The Case of Portugal," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 46(2 (Fall)), pages 433-458.
    8. Kacef, Osvaldo, 2009. "Crisis and public policies in Latin America and the Caribbean," Documentos de Proyectos 4168, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. -, 2009. "Políticas macroeconómicas en tiempos de crisis: opciones y perspectivas," Documentos de Proyectos 3664, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    10. Andersen, Torben M., 2013. "Fiscal policy targeting under imperfect information," Journal of International Money and Finance, Elsevier, vol. 34(C), pages 114-130.
    11. Fanelli, José María & Jiménez, Juan Pablo, 2009. "Crisis, volatilidad y política fiscal en América Latina," Documentos de Proyectos 4165, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    12. Gómez Sabaini, Juan Carlos & Jiménez, Juan Pablo, 2009. "El papel de la política tributaria frente a la crisis: límites y posibilidades," Documentos de Proyectos 4166, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    13. António Afonso, & Jorge Caiado, & Miguel St. Aubyn, 2015. "The macro impact of the Portuguese Constitutional Court decisions regarding the budgetary proposals of the Portuguese Budget Law (2012, 2013, 2014)," Working Papers Department of Economics 2015/06, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    14. Achim Truger, 2015. "Implementing the golden rule for public investment in Europe," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 138, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    15. Christian F. Pfeil & Lars P. Feld, 2024. "Does the Swiss Debt Brake Induce Sound Federal Finances? A Synthetic Control Analysis," Public Finance Review, , vol. 52(1), pages 3-41, January.
    16. Gikas A. Hardouvelis & Ioannis Gkionis, 2016. "A Decade Long Economic Crisis: Cyprus versus Greece," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 10(2), pages 3-40, December.
    17. Sandra Bilek-Steindl & Christian Glocker & Serguei Kaniovski & Thomas Url, 2013. "Outputlücke und strukturelles Defizit für Österreich. Kritische Analyse der Methode der Europäischen Kommission," WIFO Monatsberichte (monthly reports), WIFO, vol. 86(9), pages 737-751, September.
    18. Siemers Lars-H. & Gebhardt Heinz, 2020. "Die strukturelle Besserung der Länderfinanzen in der Niedrigzinsphase: die trügerische Leichtigkeit des Scheins," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 21(1), pages 54-78, April.
    19. Garbellini, Nadia, 2014. "Small fiscal multipliers do not justify austerity: a macroeconomic accounting analysis of public debt-to-gdp dynamics," MPRA Paper 62231, University Library of Munich, Germany.
    20. Tomasz Jędrzejowicz & Kamila Sławińska, 2014. "Shifting from Labor to Consumption Taxes: The Impact on Tax Revenue Volatility," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 6, pages 81-101.

    More about this item

    Keywords

    structural deficit; cyclically adjusted balance; one-off measures; fiscal compact;
    All these keywords.

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aic:jopafl:y:2014:v:s1:p:44-49. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sireteanu Napoleon-Alexandru (email available below). General contact details of provider: https://edirc.repec.org/data/feaicro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.