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Emerging Europe Economics Update

Emerging Europe Economics Update

Turkey: fiscal rule not the last word on budget discipline

In the absence of a new IMF programme, a fiscal rule could help to reassure markets that Turkey remains committed to maintaining fiscal discipline. But even a well designed fiscal rule requires political backing in order to be effective. And a poorly designed rule can actually help to entrench fiscal frailties.

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This article is tagged with the following subjects: Emerging Europe, Fiscal policy, Macro-economics, Turkey
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