The fiscal and monetary institutions of CESEE countries

This working paper by Zsolt Darvas and Valentina Kostyleva examines the role of fiscal and monetary institutions in macroeconomic stability and budgetary control in CESEE (central, eastern and south eastern European) countries in comparison to other OECD countries. Budgetary discipline indexes suggest that fiscal institutions are weaker in most CESEE countries than in non-CESEE OECD countries. these factors call for improved monetary institutions, stronger fiscal rules, and better budgetary procedures.