When it comes to fiscal policy, it’s better to save for a rainy day than to let it pour

While pro-cyclical fiscal policies – ie. expansionary fiscal policies in booms and contractionary fiscal stances in downturns – remain a common feature among developing countries, some countries have recently moved toward a less pro-cyclical fiscal stance, as a result of stronger institutions. From theoretical and risk management points of view, a countercyclical fiscal policy can […]

When it comes to fiscal policy, it’s better to save for a rainy day than to let it pour

While pro-cyclical fiscal policies – ie. expansionary fiscal policies in booms and contractionary fiscal stances in downturns – remain a common feature among developing countries, some countries have recently moved toward a less pro-cyclical fiscal stance, as a result of stronger institutions. From theoretical and risk management points of view, a countercyclical fiscal policy can […]