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I guess you could target an annual fiscal deficit adjustment using TC's formula, divide by 12, and check the DTS at the end of the month. If the DTS exhibits a monthly deficit flow that is not at the target annual FE level for the previous month, you could issue an immediate bottom up tax rebate to adjust for the deficit shortfall the previous month.
This would act with a delay (with resultant UE), but would be better than what we do presently for sure!!!
3 comments:
The deficit is ex post.
I guess you could target an annual fiscal deficit adjustment using TC's formula, divide by 12, and check the DTS at the end of the month. If the DTS exhibits a monthly deficit flow that is not at the target annual FE level for the previous month, you could issue an immediate bottom up tax rebate to adjust for the deficit shortfall the previous month.
This would act with a delay (with resultant UE), but would be better than what we do presently for sure!!!
Resp,
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