New Trend in Fiscal Policy: Fiscal Rules

Discretionary fiscal policy to be implemented with Keynesian ideas in the beginning 1930s has replaced fiscal rules towards the end of the 20th century. This change in the countries where the budget deficit and political interests has played an important role. Over last two decades the study of fiscal policy rules applied in the form of restrictions on the fiscal policy instruments has attracted a growing attention from researchers and policy-makers. The aim of this paper is to give information about fiscal rules and make inferences about the applicability. For this purpose firstly, fiscal rules has been discussed and has been handled country applications. Finally, the paper states what kind of properties necessary to implement the specifics of what needed to carry out the policy.