01795cas a2200253 a 4500 AALejournalIMF016218 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513529240 1018-5941 BD-DhAAL BD-DhAAL Fournier, Jean-Marc. A Model-based Fiscal Taylor Rule and a Toolkit to Assess the Fiscal Stance / Jean-Marc Fournier, Philipp Lieberknecht. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (36 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 presents a model-based fiscal Taylor rule and a toolkit to assess the fiscal stance, defined as the change in the structural primary balance. This is built on the normative buffer-stock model of the government (Fournier, 2019) which includes key channels like hysteresis, cycle-dependent multipliers and a risk premium. A simple fiscal Taylor rule prescribes the fiscal stance as a function of past government debt, past output gap and the past structural primary balance. Applications suggest several advanced economies could have better managed their fiscal stance over the last 20 years. Simulations provide fiscal stance recommendations over the medium-term. Mode of access: Internet Lieberknecht, Philipp. IMF Working Papers; Working Paper ; No. 2020/033 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/033/001.2020.issue-033-en.xml IMF e-Library