## Fiscal Monitor, September 2011: Addressing Fiscal Challenges to Reduce Economic Risks _Fiscal Monitor, September 23, 2011_ ## Source details **Canonical URL:** [Fiscal Monitor, September 2011: Addressing Fiscal Challenges to Reduce Economic Risks](https://www.imf.org/en/publications/fm/issues/2016/12/31/addressing-fiscal-challenges-to-reduce-economic-risks-25136) ## Other formats - [Markdown version](/en/publications/fm/issues/2016/12/31/addressing-fiscal-challenges-to-reduce-economic-risks-25136/index.md) - [Structured JSON version](/en/publications/fm/issues/2016/12/31/addressing-fiscal-challenges-to-reduce-economic-risks-25136/index.json) - [Bundle manifest](/en/publications/fm/issues/2016/12/31/addressing-fiscal-challenges-to-reduce-economic-risks-25136/bundle-manifest.json) ## Bibliographic details - Published: September 23, 2011 - Series: Fiscal Monitor - DOI: https://doi.org/10.5089/9781616352103.089 --- ### Summary - Despite progress in addressing key fiscal weaknesses in many countries, significant policy challenges remain in advanced, emerging, and low-income economies, and must be faced in an environment where downside risks to growth have increased. - Many advanced economies face very large adjustment needs to reduce risks related to high debt ratios. - The appropriate pace of adjustment in the short run will depend, for each country, on: - the intensity of the market pressure it confronts, - the magnitude of the risks to growth it faces, - and the credibility of its medium-term program. - The euro area needs to sustain fiscal consolidation, minimize its growth fallout, and address concerns about the adequacy of crisis resolution mechanisms. - In Japan and the United States, sufficiently detailed and ambitious plans to reduce deficits and debts are needed to prevent credibility from weakening. - Many emerging economies need to make faster progress in strengthening fiscal fundamentals before cyclical factors or spillovers from advanced economies turn against them. - Low-income countries also need to rebuild fiscal buffers, while addressing spending needs. ### Major findings and analysis - Advanced economies: - Face very large adjustment needs to reduce risks related to high debt ratios. - Short-run adjustment pace should be country-specific based on market pressure, growth risk magnitude, and program credibility. - Euro area: - Requires sustained fiscal consolidation. - Must minimize growth fallout from consolidation. - Needs to address concerns about the adequacy of crisis resolution mechanisms. - Japan and the United States: - Need sufficiently detailed and ambitious plans to reduce deficits and debts to avoid weakening credibility. - Emerging economies: - Need to make faster progress strengthening fiscal fundamentals to insulate against adverse cyclical shifts or spillovers from advanced economies. - Low-income countries: - Need to rebuild fiscal buffers while continuing to address essential spending needs. ### Policy recommendations - For all countries, tailor the short-run pace of fiscal adjustment to: - intensity of market pressure, - magnitude of growth risks, - and credibility of medium-term fiscal programs. - For the euro area: - Sustain fiscal consolidation. - Take steps to limit negative growth spillovers. - Improve crisis resolution mechanisms to restore confidence. - For Japan and the United States: - Develop and commit to sufficiently detailed and ambitious deficit- and debt-reduction plans to preserve credibility. - For emerging and low-income economies: - Accelerate efforts to strengthen fiscal fundamentals. - Rebuild or maintain fiscal buffers while addressing priority spending needs. --- ## Content in this bundle - **Fiscal Monitor - Addressing Fiscal Challenges to Reduce Economic Risks; September 2011** - [Fiscal Monitor - Addressing Fiscal Challenges to Reduce Economic Risks; September 2011 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/fm/2011/02/pdf/_fm1102.pdf.md){rel="alternate" type="text/markdown"} - [Fiscal Monitor - Addressing Fiscal Challenges to Reduce Economic Risks; September 2011 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/fm/2011/02/pdf/_fm1102.pdf){rel="external" type="application/pdf"} --- ## References - [https://www.imf.org/en/publications/fm](https://www.imf.org/en/publications/fm) - [United States and the IMF](http://www.imf.org/external/country/USA/index.htm) - [Link to Table of Contents](http://www.imf.org/external/pubs/ft/fm/2011/02/fmindex.htm) - [Explore](https://www.elibrary.imf.org/) - [Subscribe](https://www.imf.org/en/Publications/Newsletter/registration) - [More Formats on IMF eLibrary](https://elibrary.imf.org/display/book/9781616352103/9781616352103.xml?cid=lk-com-dsp-imf.org) - [Order a Print Copy](https://www.bookstore.imf.org/cart?isbn=9781616352103) - [Bond yields](https://www.imf.org/en/publications/publications-by-subject?subject=Bond+yields) - [Economic sectors](https://www.imf.org/en/publications/publications-by-subject?subject=Economic+sectors) - [Financial institutions](https://www.imf.org/en/publications/publications-by-subject?subject=Financial+institutions) - [Financial services](https://www.imf.org/en/publications/publications-by-subject?subject=Financial+services) - [Fiscal policy](https://www.imf.org/en/publications/publications-by-subject?subject=Fiscal+policy) - [Fiscal stance](https://www.imf.org/en/publications/publications-by-subject?subject=Fiscal+stance) - [Food prices](https://www.imf.org/en/publications/publications-by-subject?subject=Food+prices) - [Macroeconomic and fiscal forecasts](https://www.imf.org/en/publications/publications-by-subject?subject=Macroeconomic+and+fiscal+forecasts) - [Prices](https://www.imf.org/en/publications/publications-by-subject?subject=Prices) - [Privatization](https://www.imf.org/en/publications/publications-by-subject?subject=Privatization) - [Public debt](https://www.imf.org/en/publications/publications-by-subject?subject=Public+debt) - [Public financial management (PFM)](https://www.imf.org/en/publications/publications-by-subject?subject=Public+financial+management+%28PFM%29) - [Taxes](https://www.imf.org/en/publications/publications-by-subject?subject=Taxes) - [Value-added tax](https://www.imf.org/en/publications/publications-by-subject?subject=Value-added+tax) - [Yield curve](https://www.imf.org/en/publications/publications-by-subject?subject=Yield+curve) - [Enhancing Tax Capacity: Revenue Gains from Strengthening Tax Administration October 24, 2025](https://www.imf.org/en/publications/wp/issues/2025/10/24/enhancing-tax-capacity-revenue-gains-from-strengthening-tax-administration-571373) - [Development Committee: The Managing Director's Written Statement October 20, 2025](https://www.imf.org/en/publications/policy-papers/issues/2025/10/20/development-committee-the-managing-director-s-written-statement-571316) - [The Managing Director's Global Policy Agenda, Fall 2025: Navigating a World In Transition October 16, 2025](https://www.imf.org/en/publications/policy-papers/issues/2025/10/14/the-managing-director-s-global-policy-agenda-fall-2025-navigating-a-world-in-transition-570971) - [Progress Report to the IMFC on the Activities of the Independent Evaluation Office of the IMF October 16, 2025](https://www.imf.org/en/publications/policy-papers/issues/2025/10/16/progress-report-to-the-imfc-on-the-activities-of-the-independent-evaluation-office-of-the-571242) _Source: https://www.imf.org/en/publications/fm/issues/2016/12/31/addressing-fiscal-challenges-to-reduce-economic-risks-25136_