The ninth Banca d'Italia workshop on public finances examined four issues that are at the core of the current fiscal policy debate: fiscal stabilisation, fiscal consolidation, budgetary institutions, and the control of public expenditure. Session 1 focused on the relationship between cyclical conditions and fiscal policy and the role of fiscal stabilisers and discretionary policy. Session 2 explored the factors affecting the success of fiscal consolidation efforts and the economic impact of fiscal adjustment. Session 3 examined the role of fiscal institutions and procedures in shaping fiscal policy and achieving and maintaining sound budgetary positions. Session 4 focused on the design of expenditure rules and the role of structural reforms. The papers provide a broad overview of the ongoing work in central banks, ministries, the main international economic organisations and the academic world. They highlight the wide variety of research in the field of fiscal policy and the complexity of the underlying policy issues. Some papers draw from theoretical models, others from empirical investigations, others directly from the policy debate.