Yes folks, progress might be painfully slow, but we’re gradually moving the idea of independent fiscal policy from “you dreamers just don’t understand the real world” category to the “you’ve gotta get hip, you’ve gotta get real reform” category.
The OECD has published another article about independent fiscal policy. I’ve not had time to go through it yet, but here’s the abstract and a link – for the record.
The fiscal position has deteriorated sharply, leading to large deficits and adding to high debt levels. Some countries have experienced financing pressures. Detailed multi-year plans to stabilise the public finances are required. Prolonged fiscal consolidation and reforms will be needed to bring debt to a more prudent level, increase the ability to withstand future shocks and to prepare for future ageing costs.
Working Paper No 829: Improving fiscal performance through fiscal councils