IMF Working Papers

Fiscal Policy Response to External Crises the Case of Moldova 1998-2010

By Driton Qehaja

March 1, 2012

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Driton Qehaja. Fiscal Policy Response to External Crises the Case of Moldova 1998-2010, (USA: International Monetary Fund, 2012) accessed September 20, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

External shocks pose major challenges to fiscal policy makers through lower output and large fiscal imbalances. This paper analyzes the case of Moldova, which faced parallel crises a decade apart: the Russian crisis of 1998 and the global financial crisis of 2008-2009. The country went through large fiscal adjustments during these crises and launched important fiscal reforms. The paper reviews the crises and reform experience. In particular, it aims to explain the motivation for reforms, describe reform design and implementation, and provide an understanding of their outcomes. The paper also catalogues the form and size of international assistance for Moldova.

Subject: Corporate income tax, Expenditure, Fiscal policy, Pension spending, Public sector wages, Revenue administration, Taxes

Keywords: Authorities' reform, Central and Eastern Europe, Corporate income tax, Europe, Excise tax, Expenditure policy, Fiscal policy, Global, Government intervention, Government policy, Government risk, Government's expenditure policy, International assistance, Moldova, Pension spending, Retirement age, Structural fiscal balance, System reform, Tax revenue, Tax system, Taxable income, Wage bill, Wage system, Western Europe, WP

Publication Details

  • Pages:

    33

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2012/082

  • Stock No:

    WPIEA2012082

  • ISBN:

    9781475502343

  • ISSN:

    1018-5941

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