New Index Helps Governments Design Better Escape Clauses to Bridge Fiscal Rigidity with Crisis Adaptability
Inter-American Development Bank
JANUARY 12, 2024
These clauses, designed to provide temporary flexibility from strict fiscal targets during crises, aim to strike a balance between upholding fiscal rules and effectively responding to unexpected circumstances. signifies a 30% margin for improvement in the definition of the escape clause, pinpointing dimensions that received lower scores.
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