From the 1800s to the Future – Forecasts and Fiscal Institutions

Kovács, O. (2010): From the 1800s to the Future – Forecasts and Fiscal Institutions. News of the Month, ICEG European Center, November 2010 pp. 4-9.

Our article attempts to illustrate whether the use of fiscal institutions (e.g. independent fiscal councils) of certain European countries are taken into account by fiscal position-related forecasts reflecting that these institutionalisations positively affect the prognoses. In a time of de-councilisation in Hungary, one should bear in mind that the fiscal policy accompanied by rules and independent institutions is per se not a ‘celestial manna’; disciplined fiscal policy also requires a distinct commitment of the government. However, it seems that independent fiscal institutions enhance the acclimatisation of more disciplined public finances via serving transparency and more flexibility for the economic policy.