Development of cyclically adjusted fiscal balance in the Czech Republic after its entering into the EU

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JEL classification

• Public Economics: General
• Fiscal Policies and Behavior of Economic Agents: General

Keywords

Cyclically adjusted fiscal balance, discretionary measures, fiscal effort, Fiscal Policy

Abstract

The article deals with the cyclically adjusted fiscal balance and its changes that are usually used for evaluation of fiscal effort. The first part is aimed on stabilization function of fiscal policy and some limitations of discretionary measures. OECD methodology of cyclically adjusted fiscal balance estimation, which has been also adopted by European Commission and MFČR, is described then. Last but not least the development of cyclically adjusted fiscal balance in the Czech Republic after its entering into the EU is analysed. It shows that fiscal policy in the Czech Republic has been mostly performed in accordance with the business cycle. Finally the future development of fiscal policy in the Czech Republic is outlined.