Fiscal rules crucial for stabilizing public finances and preventing economic crises.
Fiscal rules are guidelines that countries use to manage their money better. They help prevent overspending and keep budgets in check. These rules are more effective when the economy is doing well and when there are consequences for breaking them. Some countries have special groups, called fiscal councils, to help make sure the rules are followed. Overall, countries tend to be more careful with their money when they have fiscal rules in place, but sometimes they still break the rules. This shows that just having rules isn't always enough to keep finances in order.