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

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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


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