01884cas a2200241 a 4500 AALejournalIMF002725 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451875225 1018-5941 BD-DhAAL BD-DhAAL Tanner, Evan. Fiscal Rules and Countercyclical Policy : Frank Ramsey Meets Gramm-Rudman-Hollings / Evan Tanner. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Fiscal rules-legal restrictions on government borrowing, spending, or debt accumulation (like the Gramm-Rudman-Hollings Act in the United States)-have recently been adopted or considered in several countries, both industrial and developing. Previous literature stresses that such laws restrict countercyclical government borrowing, thus preventing intertemporal equalization of marginal deadweight losses of taxation-an idea associated with Frank Ramsey. However, such literature typically abstracts from persistent current deficits that are financed by future tax increases. Eliminating such deficits may substantially reduce tax rate variability-the very goal of countercyclical borrowing-even over a finite horizon. Thus, Gramm-Rudman-Hollings and Frank Ramsey are not necessarily enemies and they may even be good friends!. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2003/220 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/220/001.2003.issue-220-en.xml IMF e-Library