IMF Fiscal Affairs Department (FAD)
March 2013

Future Events

"The Evolving Role of Fiscal Policy" IMF Fiscal Forum, IMF Headquarters, Washington DC, April 17th 2013.

“Fiscal Policy, Equity and Long-Term Growth in Developing Countries” A joint IMF and World Bank conference to be held in IMF HQ2, Conference Hall 1 on April 21-22, 2013.

"Building Sustainable Public Finances in an Uncertain World" African Fiscal Forum, Johannesburg, March 14-15, 2013.


"Fiscal Implications of Climate Change" Michael Keen, Benjamin Jones and Jon Strand, International Tax and Public Finance, Vol 20, pp. 29-70.

“The Challenge of Public Pension Reform in Advanced and Emerging Market Economies” Benedict Clements, David Coady, Frank Eich, Sanjeev Gupta, Alvar Kangur, Baoping Shang, and Mauricio Soto, IMF Occasional Paper 275.

“Value-Added Taxation and Consumption,” James Alm and Asmaa El-Ganainy, International Tax and Public Finance, Vol. 20 No. 1, pp. 105-128, 2013.

“East African Monetary Union and Fiscal Policy: Current and Future Challenges” Sanjeev Gupta and Jimmy McHugh in “The East African Community After Ten Years--Deepening Integration” edited by Hamid R. Davoodi
International Monetary Fund, 2012.

“Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate” Jean Loius-Combes, Tidiane Kinda, and Patrick Plane December 2012, Journal of Macroeconomics.

“Is Social Spending Procyclical? Evidence for Developing Countries”
Javier Arze del Granado, Sanjeev Gupta, and Alejandro Hajdenberg
World Development, Volume 42, February 2013, Pages 16-27.

“What Happens to Social Spending in IMF-Supported Programmes?” Benedict Clements, Sanjeev Gupta, and Masahiro Nozaki
Applied Economics, Volume 45, Issue 28, 2013, Pages 4022-4033.

“Fare Share” Francesca Bastagli, David Coady, and Sanjeev Gupta, Finance and Development, Volume 49, No. 4, December 2012.

“Réforme et Modernisation des Douanes en Afrique Subsaharienne Francophone, 1995-2010” Gilles Montagnat-Rentier and Gilles Parent, Revue d’Economie du Developpement, 2012, Volume 26, Issue 3.

“Tax Biases to Debt Finance: Assessing the Problem, Finding Solutions” Ruud A. de Mooij, Fiscal Studies 33 (4), pp. 489-512.

IMF Working Papers

"A Modern History of Fiscal Prudence and Profligacy" P. Mauro, R. Romeu, A. Binder, A. Zaman, IMF WP/13/5 .

"Coordinating Climate and Trade Policies: Pareto Efficiency and the Role of Border Tax Adjustments"
M. Keen and C. Kotsogiannis, IMF WP/12/289.

"Fiscal Multipliers and the State of the Economy"
A. Baum, M. Poplawski-Ribeiro, and A. Weber, IMF WP/12/286.

"Pension Reforms in Japan" K. Kashiwase, M. Nozaki, and K. Tokuoka, IMF WP/12/285.

"Issues in Extractive Resource Taxation: A Review of Research Methods and Models"
James Smith, IMF WP/12/287.

"Taxation and Leverage in International Banking" Grace Weishi, Ruud de Mooij and Tigran Poghosyan, IMF WP/12/281 .

"Modeling the Impact of Taxes on Petroleum Exploration and Development" James Smith, IMF WP/12/278.

Further Information

For new readers who would like to subscribe to the newsletter, send an email to:


To unsubscribe, send an email to:


Copyright © 2013
International Monetary Fund

All Rights Reserved

FAD Publishes New Long-term Public Finance Database

fiscal profligacy

FAD has compiled a new long term public finance database. It documents two hundred years of budget deficits and government debts covering 55 countries. The database can also be accessed through a useful online data visualization that tracks long term fiscal performance acoss a range of indicators. The database is also highlighted in a study, a chartbook and a video that looks back at fiscal policy around the world since 1800.

Publication Date for New FAD Book on Public Financial Management

PFM_Book_Cover compressed

A new FAD book "Public Financial Management and Its Emerging Architecture" critically evaluates the most important innovations that have emerged in public financial management over the past two decades. The new book covers a wide range of topics including fiscal responsibility legislation, fiscal rules, medium-term budget frameworks, fiscal councils, performance budgeting, and accrual accounting. The book will be launched at the IMF Spring Meetings on Tuesday April 16th 12:30-2:00pm at IMF Headquarters by Min Zhu, IMF Deputy Managing Director, and will include a panel discussion with Allen Schick, Robert Reischauer, Nick Manning and Gerhard Steger.

ECB-IMF Conference - Reforming EU Fiscal Governance


On December 13-14 2012, the European Central Bank and the IMF held a joint conference on reforming EU fiscal governance, in Frankfurt, Germany. The conference brought together more than 60 policymakers, academics, and representatives from the private sector and international organizations. Participants gave support for ongoing improvements in Euro Area fiscal governance, but also raised concerns about enforcement and transparency. The discussion on fiscal risk sharing was lively, with some calling for a roadmap toward a full fiscal union. Conference speakers included Alan Auerbach (University of California, Berkeley), Carlo Cottarelli (Director, FAD), Benoît Cœuré (Executive Board, ECB), Randall Henning (American University), and Jean Pisani-Ferry (Director, Bruegel).

European Fiscal Union; a Vision for the Long Run”

Eurozone flags

On November 1st 2012 a speech by FAD Director Carlo Cottarelli was presented at a conference organized by the Swiss Finance Ministry marking ten years of The Swiss Debt Break rule. The presentation - entitled “European Fiscal Union; a Vision for the Long Run” – examined the case for greater fiscal integration in Europe. The recent global crisis exposed many of the shortcomings with EMU; in particular policy coordination failures, insufficient fiscal discipline and opacity of fiscal accounts. To counter these weaknesses, there is a need for policies that would deal not only with the risks coming from idiosyncratic shocks, but also with risks coming from idiosyncratic policies within the euro area. Greater fiscal risk sharing would contribute to the first objective, and stronger fiscal governance to the latter.

Joint IMF-OECD Workshop on Public Finance and Fiscal Policy


On December 11 2012, the IMF and the OECD organized a joint workshop on the issues around the “Instruments of Fiscal Consolidation”. Participants discussed the relationship between fiscal consolidation and growth, the impact of consolidation on income distribution, and the institutional foundations of fiscal discipline (fiscal rules, fiscal councils and fiscal transparency). Speakers included Carlo Cottarelli (Director, FAD), Jørgen Elmeskov (Deputy Chief Economist, OECD) and Ray Barrell (Professor of Economics, Brunel University).

FAD Director Speaks in High Level Panel at AEA Conference

Cottarelli -1

On January 6, 2013, FAD Director Carlo Cottarelli joined Paul Krugman (Princeton), Brad DeLong (UC-Berkeley), Harold Uhlig (University of Chicago) and Valerie Ramey (UC-San Diego) in a high level panel at the recent AEA conference held in San Diego. The title of the panel was "Stimulus or Stymied? The Macroeconomics of Recessions".

Designing Fiscally Sustainable and Equitable Pension Systems in Asia

Asia 1

On January 9-10 2013, FAD and the Regional Office for Asia and the Pacific brought together the world’s leading experts on pension issues, as well as 70 government officials from 16 Asian countries. The conference - held in Tokyo - discussed how countries could address pension challenges in a sustainable and equitable manner. Asian public pension systems are likely to come under pressure due to declining fertility and a surge in the number of pensioners.

FAD Launches Consultation on Fiscal Transparency


At two conferences in Washington (co-hosted by the ICGFM) and London (co-hosted by the ICAEW and HM Treasury) on December 10, 2013, FAD launched a public consultation on revisions to the IMF’s Fiscal Transparency Code, Manual, and ROSC. The consultation marks the latest step in FAD’s efforts to revitalize the global fiscal transparency effort in the wake of the recent crisis, building on the findings and recommendations of its recently published policy paper Fiscal Transparency, Accountability, and Risk. Following completion of this first round of consultation on February 10, 2013, FAD will be preparing a revised draft of the Fiscal Transparency Code which will form the basis of a set of pilot fiscal transparency evaluations and a second round of public consultation in Spring 2013.

New FAD Paper on Fuel Subsidies

technical note cover

Many developing and emerging economies are reluctant to fully pass-through large increases in fuel prices to domestic customers. A recent Technical Note by FAD staff, entitled “Automatic Fuel Pricing Mechanisms with Price Smoothing: Design, Implementation, and Fiscal Implications” discusses how large price increases can be avoided while still ensuring full pass-through over the medium term. This can be done by incorporating a smoothing mechanism into fuel pricing mechanisms.

FAD Publishes New Manual on Cash Management

In November 2012, FAD published a new manual describing modern cash management techniques and the benefits of a formalized relationship between the treasury and the central bank. Among other things, it highlights two key principles. First, improved coordination between cash management and monetary policy is beneficial for both institutions, and second, banking services provided by the central bank to the government should be done transparently and the cost reflected in the budget.

FAD in the News

"IMF Urges Action on Fiscal Transparency" Economia.

"IMF Suggests Inclusion of Safety Measure in Transfer Pricing Law" Financial Express.

"É Preferível Austeridade Gradual, Diz Diretor do FMI" Economia.

"Fiscal Rules – Help or Hindrance?" VOXEU.

Recent Blogs

"Resolutions for the Fiscal New Year—Staying on Track Is No Easy Task", Carlo Cottarelli and Philip Gerson, iMFDirect Blog.

“Participación Equitativa”
David Coady and Sanjeev Gupta,
Diálogo a fondo, enero 17, 2013.

"Seeing Our Way Through The Crisis: Why We Need Fiscal Transparency" Carlo Cottarelli, iMFDirect Blog.

FAD Presentations

"Fiscal Federations: Lessons for the Design of a European Fiscal Union"
Presentation for ECB-IMF Conference “Reforming EU Fiscal Governance” in Frankfurt, December 13, 2012.

"Global Trends in Public Pension Spending and Outlook" Benedict Clements, Presentation for IMF Conference "Designing Fiscally Sustainable and Equitable Pension Systems in Asia.".

"Public Pension Systems in Advanced Asia Pacific Challenges and Reform Options". Sanjeev Gupta, Presentation for IMF Conference "Designing Fiscally Sustainable and Equitable Pension Systems in Asia".

Technical Assistance

During the period of November 2012-January 2013, FAD provided 59 technical assistance missions from headquarters to IMF member countries and multi-country organizations.

Useful Links

Contacts in FAD

Previous Newsletters

PFM Blog

Fiscal Issues at the IMF

IMF Fiscal Monitor

Career Opportunities

FAD seeks talented and dedicated professionals with a background in different areas of public finance, to work on macro-fiscal policy issues and to provide technical assistance advice to IMF member countries on public financial management, tax policy reform, revenue administration, and different expenditure policy issues.

Vacancies in FAD for staff and long-term expert positions are posted here. FAD also seeks experts who are interested in occasional short-term (2–3 week) assignments; interested candidates may send their CVs here.