President of the Fiscal Council, University Professor, University of Szeged
Associate Professor, University of Szeged
Published in: Public Finance Quarterly 2012/1 (p. 9-27.)
Summary: The crisis of financial intermediary systems uncovered not only the consequences of the shifting of the centre of gravity of world economic development, and with it the structural problems of the European economy, but also highlighted the disequilibria of state budget management – of fiscal policy – more clearly than ever before. The problems primarily surfaced in countries where the harmony between economic performance and the financing of social services and welfare systems had been missing for some time and the consequences of the lack of performance were obscured by loans. In the resulting situation, it became clear that the fight against the financial-economic crisis would be futile without adjusting fiscal policy. The improvement of the efficiency of fiscal management is a strategic issue. Generating and maintaining the harmony between the performance of the economy and resources spent on publicly financed services is a condition of socio-economic stability. Under the circumstances of the crisis, this requires the solving of financing 'equations' that are adapted to new domestic and foreign policy qualities and social realities, the solution of which goes far beyond the world of traditional 'budgetary mathematics'. Our study will outline the common features and action patterns found within the measures of crisis management aimed at public finances. We will present the features and characteristics of the European practice of fiscal crisis management and in light of this try to position the measures of Hungarian fiscal practice.
Keywords: fiscal policy, crisis management, debt management
Journal of Economic Literature (JEL) kód: E62, H12, H63