Kaplanoglou, Georgia and Rapanos, Vassilis T. (2011) The Greek fiscal crisis and the role of fiscal governance. GreeSE, 48. Hellenic Observatory, London, UK.
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In view of the growing attention paid to the role of fiscal governance in budgetary outcomes, this paper tries to shed light on the link between the recent Greek fiscal crisis and aspects of fiscal governance. It reviews fiscal developments in Greece over the last decade and challenges the widely held view that optimistic macroeconomic forecasts adopted by the Greek government, as well as three international organisations, were responsible for unrealistic fiscal deficit forecasts. Instead, the weak domestic institutional budget framework and the ineffectiveness of international organizations to act as signaling mechanisms emerge as the main reasons for weak fiscal performance. In this light, the paper puts forward some ideas for improving the domestic institutional framework for conducting fiscal policy in Greece.
|Item Type:||Monograph (Working Paper)|
|Additional Information:||© 2011 The Authors|
|Uncontrolled Keywords:||fiscal governance, fiscal forecasts, fiscal discipline, budget institutions, public financial management, Greece|
|Library of Congress subject classification:||H Social Sciences > HC Economic History and Conditions
H Social Sciences > HJ Public Finance
|Sets:||Research centres and groups > Hellenic Observatory|
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