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    November 4, 2010
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Fiscal Monitor

Fiscal Exit: From Strategy to Implementation

November 2010

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    World Economic and Financial Surveys

    ©2010 International Monetary Fund
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    The Fiscal Monitor was launched in 2009 to survey and analyze the latest public finance developments, update fiscal implications of the crisis and medium-term fiscal projections, and assess policies to put public finances on a sustainable footing. It is prepared twice a year by the IMF’s Fiscal Affairs Department.

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    Download the Full Text PDF

    Contents

    Summing Up by the Acting Chair

    Preface

    Main Themes

    Chapter 1. Fiscal Developments and Near-Term Outlook

    Fiscal Developments in 2010: The Beginning of the Fiscal Exit

    Outlook for 2011: Broader Fiscal Adjustment

    The Pace of Fiscal Consolidation: What Explains the Differences Across Advanced Economies?

    Public Debt Still Rising, with Some Central Bank Support

    Financial Sector Support and Recovery to Date


    Chapter 2. Sovereign Financing and Government Debt Markets

    Sovereign Gross Financing Needs: Continuing at High Levels

    Government Bond Yields and Spreads: A More Polarized Market


    Chapter 3. Fiscal Adjustment Plans and Medium-Term Fiscal Outlook

    Adjustment Plans: Time Frame and Commitment

    Size and Speed of Adjustment: Authorities’ Plans and IMF Staff Projections

    Composition of Adjustment

    Medium-Term Adjustment Needs and Structural Reforms

    Reform of Fiscal Institutions

    Medium-Term Fiscal Trends in Low-Income Countries


    Chapter 4. Assessing Fiscal Risks

    Rollover Problems

    Risks of High Long-Term Public Indebtedness

    Chapter 5. Selected Spending and Tax Issues

    The Effect of Pension Reforms on Growth

    Financial Sector Taxation: A Summary of the IMF Report

    Carbon Pricing: Issues in the Run Up to Cancun

    The VAT: Tapping Its Full Potential, not Only in the United States and Japan

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