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Author/Editor:
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Cottarelli, Carlo ; Jaramillo, Laura
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Publication Date:
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May 01, 2012
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Electronic Access:
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Free Full text
(PDF file size is 391KB).
Use the free
Adobe Acrobat Reader
to view this PDF file
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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
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Summary:
Implementation of fiscal consolidation by advanced economies in coming years needs to take into account the short and long-run interactions between economic growth and fiscal policy. Many countries must reduce high public debt to GDP ratios that penalize longterm growth. However, fiscal adjustment is likely to hurt growth in the short run, delaying improvements in fiscal indicators, including deficits, debt, and financing costs. Revenue and expenditure policies are also critical in affecting productivity and employment growth. This paper discusses the complex relationships between fiscal policy and growth
both in the short and in the long run.
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Order a print copy
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Series:
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Working Paper No. 12/137
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Subject(s):
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Developed countries | Economic growth | Fiscal consolidation | Fiscal policy
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Author's Keyword(s):
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Government debt | budget deficit | growth | advanced economies | sovereign spreads |
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English
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Publication Date:
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May 01, 2012
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Format:
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Paper
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Stock No:
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WPIEA2012137
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Pages:
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28
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Price:
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US$18.00 )
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Please address any questions about this title to
publications@imf.org
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