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Reprints Related items Making fiscal policy credible: Bind gamesSep 10th 2009To be fair to the politicians, this fiscal balancing act is far harder than the central bankers' task, for two reasons.
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Some countries had extraordinary success in tightening their fiscal balances.
"There is a risk that, in some countries, fiscal balances may fall behind the targets agreed".
From 1987 to 1989 Ireland's fiscal balances improved and debt declined even as growth accelerated.
A preoccupation with short-term fiscal balance has, for instance, kept tariff rates high.
But the fiscal balance is indeed red, and the world's moneymen are indeed timid folk.
Second, any amendment should be simple, focused only on fiscal balance.
First, government establishes an overall climate, with competitive tax rates and predictable regulations and fiscal balance.
He also admonished "bleeding heart liberals" to be open to program reductions to restore fiscal balance.
"The markets are telling us that it is not any more a question of fiscal balances.
George Osborne's aim is to get to a fiscal balance by 2020... That's what matters.
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