There are lots of fiscal policy objectives, but the main ones are allocating resources, short-term stabilization, longer-term development and maximizing employment.

The budget is a tool to achieve these objectives. Therefore, fiscal policy should not be aimed at “balancing the budget”.

Indeed, avoiding “fiscal dominance”—a situation where monetary policy is driven by fiscal objectives at the expense of inflation objectives —has been an essential aspect in the development ...

Fiscal policy is a powerful and adaptable tool for achieving distributional objectives Considering tax and spending programs together enhances the effectiveness of fiscal redistribution Improving both ...

Discussions at the Bank of Mongolia’s recent international conference marking its centennial highlighted an important policy issue: how to better align monetary and fiscal policies to tackle high ...