02041cas a2200265 a 4500 AALejournalIMF014549 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498305525 1018-5941 BD-DhAAL BD-DhAAL Bova, Elva. Fiscal Rules and the Procyclicality of Fiscal Policy in the Developing World / Elva Bova, Nathalie Carcenac, Martine Guerguil. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (27 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 This paper documents the spread of fiscal rules in the developing world and investigates the relation between fiscal rules and procyclical fiscal policy. We find that, since the early 2000s, developing countries outnumbered advanced economies as users of fiscal rules. Rules were adopted either as part of the toolkit to join currency unions or to strengthen fiscal frameworks during and after large stabilization and policy reform episodes. The paper also finds that the greater use of fiscal rules has not shielded these countries from procyclicality, since fiscal policy remains procyclical following the adoption of a fiscal rule. We find partial evidence that some features of 'second generation' rules, such as the use of cyclically-adjusted targets, well-defined escape clauses, together with stronger legal and enforcement arrangements, may be associated with less procyclicality. Mode of access: Internet Carcenac, Nathalie. Guerguil, Martine. IMF Working Papers; Working Paper ; No. 2014/122 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/122/001.2014.issue-122-en.xml IMF e-Library