Fiscal Policy Council in Poland

Maciej Krzak

Abstract


This paper discusses whether an independent fiscal policy council (FPC) should be set up in Poland, a country that has had problems with fiscal discipline for years. It starts with theoretical underpinnings for such an institution, namely the reasons for a so-called deficit bias such as shortsightedness of the government, common-pool problem and time-inconsistency of optimal policy. Then it proceeds to the variants of delegating control over fiscal policy, forecast formulation and evaluation and advice to such a body by elected politicians. After these considerations, the arguments in favor of setting up an FPC in Poland are outlined and broad guidelines to its shape are presented.

Keywords


Fiscal Policy Council, deficit bias, common-pool problem, time-inconsistency of policy, delegating, fiscal discipline, debt sustainability

Full Text:

PDF (Język Polski)

References


Aleksandrowicz P. (2013), Pieniędzy publicznych powinna pilnować rada polityki fiskalnej, Obserwator Finansowy.pl, www.obserwatorfinansowy.pl, 25 lutego 2013 r.

Alesina A., Tabellini G. (1990), A positive theory of fiscal deficits and government debt, „Review of Economic Studies”, Vol. 57, No. 3. DOI: http://dx.doi.org/10.2307/2298021

Barro R.J., Gordon D. (1983), A Positive Theory of Monetary Policy in a Natural rate Model, „Journal of Political Economy”, Vol. 91, No. 4, August 1983.

Buchanan J.M., Tullock G. (1962), The Calculus of Consent: Logical Foundation of Constitutional Democracy, University of Michigan Press, Ann Arbor.

Calmfors L., Wren-Lewis S. (2011), What are fiscal councils, and what do they do?, Voxeu.org/article/what-are-fiscal-councils, 21 April 2011.

Calmfors L. (2011), The Role of Independent Fiscal Policy Institutions, „CESIfo Working Paper”, No. 3 367, February 2011.

Debrun X., Hauner D., Kumar M.S. (2009), Independent Fiscal Agencies, „Journal of Economic Surveys”, Vol. 23, No. 1. DOI: http://dx.doi.org/10.1111/j.1467-6419.2008.00556.x

Debrun X., Kinda T. (2014), Strengthening Post-Crisis Fiscal Credibility: Fiscal Councils on the Rise ‒ A New Dataset, „IMF Working Paper”, WP/14/58, April 2014.

European Commission (2006), Part III: National numerical fiscal rules and institutions for sound public finances, 135‒195, part of Public finances in EMU, European Economy 3.

European Commission, Recommendation for a Council Recommendation on Poland’s 2014 national reform programme and delivering a Council opinion on Poland’s 2014 convergence programme, COM(2014), 422 final, Brussels, 2 June 2014.

European Parliament and the Council of the European Union, Regulation (EU) No 473/2013 on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the Member States in the euro area, COM(2013), 473, 21 May 2013.

Gołębiowski G. (2010), Rada polityki fiskalnej, „Infos”, nr 9(79), Biuro Analiz Sejmowych, 6 maja 2010.

Gołębiowski G., Marchewka-Bartkowiak K. (2013), Niezależna instytucja (rada) fiskalna – międzynarodowe modele instytucjonalne. Wnioski dla Polski, „Analizy”, nr 2(91), Biuro Analiz Sejmowych, 26 marca 2013.

Hardin G. (1968), The Tragedy of the Commons, „Science”, Vol. 162, No. 3859.

IMF (2009), Fiscal rules – anchoring expectations for sustainable public finances, Fiscal Affairs Department.

Jonung L., Larch M. (2004), Improving fiscal policy in the EU: the case for independent forecasts, „European Economy Economic Papers”, No. 210, July 2004.

Kirsanova T., Leith C., Wren-Lewis S. (2006), Should Central Banks Target Consumer Prices or the Exchange Rate?, „Economic Journal”, Vol. 116. DOI: http://dx.doi.org/10.1111/j.1468-0297.2006.01097.x

Kopits G. (2001), Fiscal rules: useful policy framework or unnecessary ornament?, „IMF Working Paper” 01/145.

Kopits G. (ed.) (2013), Restoring Public Debt Sustainability, The Role of Independent Fiscal Institutions, Oxford University Press, introduction.

Krogstrup S., Wyplosz C. (2006), A common pool theory of deficit bias correction, „CEPR Discussion Paper”, No. 5866.

Leeper E.M. (2009), Anchoring Fiscal Expectations, „NBER Working Paper”, nr 15 269, August 2009, Reserve Bank of New Zealand Bulletin.

Merola R., Pérez J. (2012), Fiscal Forecast Errors: Governments vs Independent Agencies?, „Banco de Espada, Working Paper”, No. 1233.

Piątkowski M. (2014), Czas na Radę Polityki Fiskalnej, www.tiger.edu.pl/onas/piatkowski/rpf/pdf (dostęp: 11.10.2014 r.).

Person T., Svensson L.E.O. (1989), Why a Stubborn Conservative Would Run a Deficit: Policy With Time-Inconsistent Preferences, „Quarterly Journal of Economics”, Vol. 104, No. 2, May 1989. DOI: http://dx.doi.org/10.2307/2937850

Radzyner O., Riesinger S. (1997), Central Bank Independence in Transition:Legislation and Reality in Central and Eastern Europe, Focus on Transition, National Bank of Austria (OeNB), No. 1.

Rutkowski M. (2012), Rada Polityki Fiskalnej, „Rzeczpospolita”, www.ekonomia.rp.pl artykul/839428.html, 20 marca 2012.

Sejm RP VII kadencji, Poselski projekt ustawy o radzie fiskalnej, druk 611, 22 lutego 2012, www.orka.sejm.gov.pl/druki.

Von Hagen J., Harden I. (1995), Budget processes and commitment to fiscal discipline, „European Economic Review”, No. 39.

Wren-Lewis S. (2011), Comparing the delegation of monetary and fiscal policy, Department of Economics Discussion Papers, University of Oxford, No. 540, March 2011.

Wyplosz Ch. (2005), Fiscal policy: Institutions versus rules, „National Institute Economic Review”, No. 191.

Wyplosz Ch. (2008), Fiscal policy councils: Unlovable or just unloved?, „Swedish Economic Policy Review”.

Wyplosz Ch. (2011), Fiscal Discipline: Rules Rather Than Institutions, „National Institute Economic Review”, No. 217, July 2011.

Zalecenie Rady z 8 lipca 2014 r. w sprawie krajowego programu reform Polski na 2014 r. oraz zawierające opinię Rady na temat przedstawionego przez Polskę programu konwergencji na 2014 r., Dziennik Urzędowy Unii Europejskiej, 29.07.2014.

Rada Ministrów, Program konwergencji, Aktualizacja 2014, kwiecień 2014.




DOI: http://dx.doi.org/10.17951/h.2015.49.2.91
Date of publication: 2015-07-28 13:12:33
Date of submission: 2015-07-03 13:10:31


Statistics


Total abstract view - 671
Downloads (from 2020-06-17) - PDF (Język Polski) - 0

Indicators



Refbacks

  • There are currently no refbacks.


Copyright (c) 2015 Maciej Krzak

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.