Should the role of preparing budgetary projections be delegated to an independent agency?
Merola, Rossana, Pérez, Javier. Who should we trust when it comes to fiscal forecasts: governments or independent agencies? This column argues that this question is, in fact, a red herring: empirical evidence suggests that in the past, international agencies’ fiscal forecasts were partially affected by the same problems that the literature widely acknowledges for governmental forecasts. […]