Fiscal Rules: Anchors of Stability

We believe that fiscal rules help to consolidate budgets in the post-Corona period. Fiscal rules reduce fiscal deficits and debt-to-GDP ratios, promote economic growth, mitigate room for fiscal manipulation and encourage politicians to prioritize individual policies.

Engineering Good Times: Fiscal Manipulation in a Global Economy

In a global economy, a country’s international economic ties affect both how desirable pre-electoral fiscal manipulation is to the government, and how costly it is to the government to engage in such manipulation. Governments are more likely to engage in pre-electoral fiscal manipulation when the country’s exchange rate is flexible and the domestic economy is highly open to international trade, and when the exchange rate is fixed and the domestic economy is relatively closed to international trade. This argument is tested empirically through a quantitative analysis of changes in government debt in twenty OECD countries from 1974 to 2008.

THE LINK BETWEEN ACCOUNTING AND FISCAL EVASION

In the literature, controversies have arisen concerning the link between accounting and fiscal evasion, which are the object of debates among specialists from different specialized organizations from many countries. Under the term of “creative accounting”, the American and European tax systems have made up an ensemble of accounting mechanisms and also of fiscal manipulation which increased the interest and involvement of the states in the mitigation of such fraud risks and fiscal subterfuges whose percentage in the countries’ GDP varies from 8 to 80%. Starting from the SWOT analysis of tax evasion in the real and underground economy, the specialists of the liberal trades are called to join the fight against fiscal fraud and share their professionalism in creating a real competitive environment characterized by fair play.