01744cas a2200277 a 4500 AALejournalIMF016419 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513508863 1018-5941 BD-DhAAL BD-DhAAL Budina, Nina. Recognizing the Bias : Financial Cycles and Fiscal Policy / Nina Budina, Borja Gracia, Xingwei Hu, Sergejs Saksonovs. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (30 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 argues that asset price cycles have significant effects on fiscal outcomes. In particular, there is evidence of debt bias-the tendency of debt to increase over the cycle- that is significantly larger for house price cycles than stand-alone business cycles. Automatic stabilizers and discretionary fiscal policy generally respond to output fluctuations, whereas revenue increases due to house price booms are largely treated as permanent. Thus, neglecting the direct and indirect impact of asset prices on fiscal accounts encourages procyclical fiscal policies. Mode of access: Internet Gracia, Borja. Hu, Xingwei. Saksonovs, Sergejs. IMF Working Papers; Working Paper ; No. 2015/246 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/246/001.2015.issue-246-en.xml IMF e-Library