Fiscal Consolidation: Taking Stock of Success Factors, Impact, and Design
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Summary:
Surges in public debt in many countries since the COVID-19 pandemic have rekindled interest in fiscal consolidations, which often entail difficult policy choices in the face of economic and political constraints. This paper presents findings from a survey of the literature on fiscal consolidations, focusing on the pre-existing conditions, impact and design aspects of past consolidation episodes. These findings provide insight into factors that influence the chance of successful consolidations, their growth and distributional impact, the pace, phasing, duration and policy mix of reforms to mitigate the impact, and the role of fiscal institutions and capacity development in successful consolidations.
Series:
Working Paper No. 2023/063
Subject:
Expenditure Fiscal consolidation Fiscal policy Inflation Prices Public debt
Frequency:
regular
English
Publication Date:
March 17, 2023
ISBN/ISSN:
9798400235221/1018-5941
Stock No:
WPIEA2023063
Pages:
39
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