Strategies for Fiscal Consolidation in the Post-Crisis World
September 17, 2010
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Summary
In response to the global financial crisis, governments provided substantial support to the financial and other key sectors. Although this cushioned the adverse effects of the crisis, it is necessary now to articulate a strategy to ensure the sustainability of public finances. This paper discusses the scale and composition of fiscal adjustment that will need to occur once the recovery is securely under way. Although specific country-level circumstances will influence the composition of the adjustment and its political feasibility, in many cases restoring fiscal sustainability will require reforms to reduce spending and increase tax revenue.
Subject: Domestic debt, Expenditure, Fiscal consolidation, Fiscal policy, Fiscal stance, Pension spending, Public debt
Keywords: advanced economy, Africa, debt, debt ratio, debt ratio objective, debt ratio target, Domestic debt, DP, DPPP, economic growth, economy, Fiscal consolidation, Fiscal stance, foreign currency, Global, government debt, interest rate, Pension spending
Pages:
64
Volume:
2010
DOI:
Issue:
008
Series:
Departmental Paper No. 2010/008
Stock No:
SFCPEA
ISBN:
9781589069374
ISSN:
2616-5333
