Fiscal Implications of the Global Economic and Financial Crisis

 
 
Publication Date: September 18, 2009
 
Electronic Access: Link to Abstract

Electronic Access: Link to Table of Contents

 
Summary: The economic and financial crisis is affecting the fiscal accounts of virtually every country. Public sector support for the financial system, fiscal stimulus and the automatic stabilizers, as well as the revenue decline from the downturn in commodity and asset prices, are leading to sharp increases in deficits and debt stocks around the world. Expansionary fiscal policy continues to be necessary in the short term to stimulate economic recovery. But it is now essential that governments reassess the state of their public finances in light of the global crisis and adopt strategies that will ensure medium- and long-term fiscal sustainability. Many of the advanced economies most affected by the crisis are also those where age-related spending will increase markedly in the coming years, adding particular urgency to the need to identify medium-term consolidation strategies. This new paper, which focuses mainly on advanced and emerging market economies, employs projections based on the April 2009 World Economic Outlook to quantify the fiscal implications of the crisis for a cross-section of countries. The authors assess the post-shock fiscal balances and debt outlook, and suggest ways for governments to clarify their strategies for maintaining fiscal solvency.
 
Series: Occasional Paper No. 269
Subject(s): Budgets | Capital markets | Developed countries | Emerging markets | Financial crisis | Financial institutions | Fiscal policy | Fiscal stability | Global Financial Crisis 2008-2009 | Pension funds | Public finance

 
English
Publication Date: September 18, 2009
ISBN/ISSN: 978-1-58906-850-6 / 0251-6365 Format: Paper
Stock No: S269EA Pages: 85
Price:
US$33.00
 
 
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