Assessing Fiscal Sustainability in Theory and Practice

Author/Editor:

Nigel A Chalk ; Richard Hemming

Publication Date:

April 1, 2000

Electronic Access:

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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

Summary:

The main purpose of this paper is to provide an overview of approaches to assessing fiscal sustainability. It summarizes the general analytical background, focusing on the present value budget constraint, which is the benchmark against which solvency is determined, tests of sustainability (including sustainability indicators), and sustainability and uncertainty. The paper then looks at the way in which fiscal sustainability has been assessed in different types of IMF work. Finally the link between fiscal and external sustainability is discussed.

Series:

Working Paper No. 2000/081

Subject:

External debt Fiscal policy Fiscal stance Fiscal sustainability Public debt

English

Publication Date:

April 1, 2000

ISBN/ISSN:

9781451850352/1018-5941

Stock No:

WPIEA0812000

Pages:

27

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