Fiscal Adjustment in Transition Countries: Evidence From the 1990's
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
In the 1990s, transition countries underwent large adjustments to address fiscal imbalances. This paper examines whether the factors identified in the literature on advanced economies, the size and composition of adjustment, are important in transition economies. It finds that larger consolidations were more successful in addressing fiscal imbalances on a durable basis. Policies focusing on expenditure reductions were more successful than those relying on revenue increases. There is little evidence of expansionary fiscal contractions, but fiscal contractions did not have a significantly negative impact on growth either. Few fiscal stimuli succeeded in boosting growth.
Series:
Working Paper No. 2003/036
Subject:
Expenditure Fiscal consolidation Fiscal policy Fiscal stabilization Fiscal stance
English
Publication Date:
February 1, 2003
ISBN/ISSN:
9781451845471/1018-5941
Stock No:
WPIEA0362003
Pages:
22
Please address any questions about this title to publications@imf.org