New Study Reveals Best Indicators for Assessing Fiscal Policy Impact.
Structural indicators are used to measure a country's fiscal policy impact. The study compares different indicators to see which ones are best for assessing fiscal policy changes. It finds that changes in the primary structural balance are better indicators of discretionary fiscal policy than changes in the primary balance. Additionally, changes in the structural balance can show the demand stimulus from fiscal policy changes. The study also discusses issues with measuring structural balances and suggests using fiscal impulse as an alternative.