Improving fiscal policy in the EU: the case for independent forecasts

Author (Corporate)
Series Title
Series Details No.210, August 2004
Publication Date August 2004
ISSN 1725-3187
EC KC-AI-04-210-EN-C
Content Type

The evidence from several euro-area countries demonstrates the existence of a forecast bias in the budgetary process, which negatively affects fiscal performance. To remedy this bias, we suggest that forecasting should be assigned to an authority independent from the ministry of finance and the government, with the task of producing unbiased projections of growth and other variables crucial for the budgetary process.-
Source Link Link to Main Source http://ec.europa.eu/economy_finance/publications/publication_summary650_en.htm
Related Links
http://ec.europa.eu/comm/economy_finance/publications/economic_papers/2004/ecp210en.pdf http://ec.europa.eu/comm/economy_finance/publications/economic_papers/2004/ecp210en.pdf
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