Getting the Dog to Bark Disclosing Fiscal Risks from the Financial Sector

Fiscal reporting is intended to warn of fiscal crises while there is still time to prevent them. The recent crisis thus seems to reveal a failure of fiscal reporting: before the crisis, even reports on fiscal risk typically did not mention banks as a possible source of fiscal problems. One reason fo...

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Bibliographic Details
Main Author: Irwin, Timothy
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2015
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Finance, Public 
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653 |a Banks 
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653 |a Financial crises 
653 |a Industries: Financial Services 
653 |a Banks and banking 
653 |a Financial sector policy and analysis 
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653 |a Mortgages 
653 |a Financial risk management 
653 |a Accounting 
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653 |a Financial Risk Management 
653 |a Depository Institutions 
653 |a Economic & financial crises & disasters 
653 |a General Financial Markets: Government Policy and Regulation 
653 |a Micro Finance Institutions 
653 |a Fiscal policy 
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653 |a Forecasts of Budgets, Deficits, and Debt 
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520 |a Fiscal reporting is intended to warn of fiscal crises while there is still time to prevent them. The recent crisis thus seems to reveal a failure of fiscal reporting: before the crisis, even reports on fiscal risk typically did not mention banks as a possible source of fiscal problems. One reason for silence was that the risk arose partly from implicit guarantees, and governments may have feared that disclosure would increase moral hazard. The crisis cast doubt, however, on the effectiveness of silence in mitigating risks. This paper discusses how fiscal risks from the financial sector could be discussed in reports on fiscal risk, with a view to encouraging their mitigation