l0grisk intelligence · english

// definition

Quasi-fiscal activity

Public-policy intervention outside the central government budget

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Macro & central banks

Short definition

An intervention by a central bank or public institution with effects comparable to government spending, a subsidy or revenue, but recorded outside the central government budget. Moving it into that budget can make the cost more visible without automatically eliminating it.

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Intuition

Moving a policy expense between public institutions changes who records it, while its public cost can remain.

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