Subject. This article discusses the issues related to national and supranational budgetary rules as a key element of fiscal policy, and their adaptation to economic and geopolitical shocks. Objectives. The article aims to analyze the content of national and supranational budgetary rules in order to identify their features and areas of their adaptation to economic and geopolitical shocks. Methods. For the study, I used analysis, synthesis, comparison, and statistical methods. Results. The study shows that budgetary rules get periodically modified in the conditions of cyclical economy, fluctuations in prices for non-renewable energy resources (oil, gas), as well as in the emergence of fundamentally new development challenges. Conclusions. The geopolitical crisis of 2022 is a historical example of the successful adaptation of the Russian financial system to the unprecedented number and degree of impact on the country's economy of sanctions by the United States and its allies.
Keywords: budgetary rules, economic and geopolitical shocks, COVID-19, budget balance
References:
Laffer A.B. The Ellipse: An Explication of the Laffer Curve in a Two-Factor Model. In: Canto V.A. (ed.) The Financial Analyst's Guide to Fiscal Policy. New York, Greenwood Press, 1986, pp. 1–35.
Hotelling H. The General Welfare in Relation to Problem of Taxation and of Railway and Utility Rates. Econometrica, 1938, vol. 6, no. 3, pp. 242–269. URL: Link
Dupuit J. O mere poleznosti grazhdanskikh sooruzhenii. V kn.: Vekhi ekonomicheskoi mysli. T. 1. Teoriya potrebitel'skogo povedeniya i sprosa [De la mesure de l'utilite des travaux publics. In: Milestones of Economic Thought. Vol. 1. Theory of Consumer Behavior and Demand]. St. Petersburg, Ekonomicheskaya shkola Publ., 2000, pp. 28–66.
Keynes J.M. Obshchaya teoriya zanyatosti, protsenta i deneg [The General Theory of Employment, Interest and Money]. Moscow, Eksmo Publ., 2007, 960 p.
Johansen L. Some Notes on the Lindahl Theory of Determination of Public Expenditures. International Economic Review, 1963, vol. 4, no. 3, pp. 346–358. URL: Link
Myrdal G. 1939. Monetary Equilibrium. New York, Augustus M. Kelly, 1965.
Musgrave R.A. The Theory of Public Finance: A Study in Public Economy. New York, McGraw Hill Book Co., 1959, pp. 73–78.
Ohlin B. Some Notes on the Stockholm Theory of Savings and Investment I. The Economic Journal, 1937, vol. 47, no. 185, pp. 53–69. URL: Link
McGee R.W. Taxation and Public Finance: A Philosophical and Ethical Approach. Commentaries on the Law of Accounting & Finance, 1997, vol. 1, pp. 157–240. URL: Link
Perotti R. Fiscal Policy in Developing Countries: A Framework and Some Questions. World Bank Policy Research Working Paper, 2007, no. 4365. URL: Link
Milesi-Ferretti G.M. Good, Bad or Ugly? On the Effects of Fiscal Rules with Creative Accounting. IMF Working Paper, 2000, vol. 2000, iss. 172, 26 p. URL: Link
Spaventa L. The Growth of Public Debt: Sustainability, Fiscal Rules, and Monetary Rules. IMF Staff Paper, 1987, vol. 34, no. 2, pp. 374–399. URL: Link
Millar J. The Effects of Budget Rules on Fiscal Performance and Macroeconomic Stabilization. Bank of Canada Working Paper, 1997, vol. 97-15. URL: Link
Dur R.A.J., Peletier B.D., Swank O.H. The Effect of Fiscal Rules on Public Investment if Budget Deficits are Politically Motivated. Tinbergen Institute Discussion Papers, 1997, no. 97-125/1. URL: Link
Musaev R., Malakhov A. [“Budgetary rule” in Russia: experience and prospects]. Ekonomicheskaya politika = Economic Policy, 2014, no. 6, pp. 161–170. URL: Link (In Russ.)
Lazaryan S.S., Nikonov I.V., Votinov A.I., Gubkova E.A. [International Practice of Fiscal Rules: Formation of Modern Approaches]. Finansovyi zhurnal, 2019, no. 2, pp. 65–80. (In Russ.) URL: Link
Ponkratov V.V., Pozdnyaev A.S., Vorontsov A.N. [Budgetary rules in relation to market commodity incomes – Russian practice and directions for improvement]. Finansovaya zhizn'= Financial Life, 2019, no. 3, pp. 83–86. (In Russ.)
Tokaev N.Kh. [Management of budgetary expenditures in the region: Features of the methods, trends, drawing the norms and rules]. Terra Economicus, 2013, vol. 11, no. 3-3, pp. 127–132. (In Russ.) URL: Link
Henning C.R., Kessler M. Fiscal Federalism: US History for Architects of Europe's Fiscal Union. Peterson Institute for International Economics Working Paper, 2012, no. 2012-1. URL: Link
Kudrin A.L., Sokolov I.A. [Fiscal rules as an instrument of balanced budget policy]. Voprosy Ekonomiki, 2017, no. 11, pp. 5–32. (In Russ.) URL: Link
