Central banks have an incentive to monitor the fiscal position of the government for at least two reasons. First fiscal policy can constrain the implementation of monetary policy, particularly when governments call on the central bank to fund government programmes. Second, fiscal policy measures can affect aggregate demand as well as the condition of the financial sector. Fiscal measures therefore affect the central bank's ability to achieve macroeconomic and financial stability.
Three key issues are: (i) How should central banks assess fiscal positions? (ii) What is the experience with countercyclical fiscal policy? and (iii) How do fiscal operations affect central bank balance sheets, and does this raise any problems?
Senior officials from a number of emerging economies discussed these issues at a meeting in Basel in December 2002. This volume contains revised versions of the papers prepared by participants describing experiences in their own economies, and the background papers prepared by BIS staff.
| Table of contents | |
| Participants in the meeting Read (PDF, 2 pages, 83 kb) | |
| BIS background papers | |
| Fiscal issues and central banking in emerging economies: an overview Read (PDF, 9 pages, 160 kb) | |
| Fiscal positions in emerging economies: central banks' perspective Read (PDF, 28 pages, 608 kb) | |
| Countercyclical fiscal policy and central banks Read (PDF, 33 pages, 180 kb) | |
| Central bank balance sheets and fiscal operations Read (PDF, 13 pages, 597 kb) | |
| Contributed papers | |
| Are there reasons to doubt fiscal sustainability in Brazil? Read (PDF, 14 pages, 112 kb) | |
| Fiscal rule and central bank issues in Chile Read (PDF, 9 pages, 96 kb) | |
| China' s monetary and fiscal policy Read (PDF, 2 pages, 30 kb) | |
| Fiscal issues and central banks in emerging markets: the case of Colombia Read (PDF, 13 pages, 83 kb) | |
| Fiscal issues and central banking policy in the Czech Republic Read (PDF, 9 pages, 123 kb) | |
| The fiscal deficit and macroeconomic stability in Hong Kong SAR Read (PDF, 9 pages, 281 kb) | |
| Calculating the fiscal stance at the Magyar Nemzeti Bank Read (PDF, 6 pages, 48 kb) | |
| Fiscal issues and central banks in emerging markets: an Indian perspective Read (PDF, 8 pages, 108 kb) | |
| Fiscal issues and central banks: Indonesia' s experience Read (PDF, 4 pages, 53 kb) | |
| The interaction between fiscal and monetary policy in Israel Read (PDF, 9 pages, 118 kb) | |
| The fiscal response to the currency crisis and the challenges ahead - Korea' s experience Read (PDF, 6 pages, 232 kb) | |
| Fiscal policy in Malaysia Read (PDF, 7 pages, 163 kb) | |
| Implications of fiscal issues for central banks: Mexico' s experience Read (PDF, 18 pages, 464 kb) | |
| Fiscal issues and central banks in emerging markets: the case of Peru Read (PDF, 10 pages, 252 kb) | |
| The tax-exempt status of the central bank in the Philippines Read (PDF, 6 pages, 83 kb) | |
| The monetary and fiscal policy mix in Poland Read (PDF, 4 pages, 51 kb) | |
| Budget and tax problems and central banks: Russia' s experiences Read (PDF, 6 pages, 82 kb) | |
| Assessing the fiscal policy stance in Singapore Read (PDF, 6 pages, 177 kb) | |
| The implications of fiscal issues for central banks: the South African experience Read (PDF, 4 pages, 84 kb) | |
| Thailand' s recent public debt issues Read (PDF, 11 pages, 351 kb) | |
| Some issues in fiscal policy and central banking: the case of Turkey Read (PDF, 16 pages, 490 kb) | |
| Contributed Papers | |
| Previous volumes from Deputy Governors' Meetings Read (PDF, 1 pages, 25 kb) | |
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