## IMF Fiscal Monitor -- Addressing Fiscal Challenges to Reduce Economic Risks, September 2011

_Fiscal Monitor, September 20, 2011_

## Source details

**Canonical URL:** [IMF Fiscal Monitor -- Addressing Fiscal Challenges to Reduce Economic Risks, September 2011](https://www.imf.org/en/publications/fm/issues/2016/12/31/addressing-fiscal-challenges-to-reduce-economic-risks)

## Other formats

- [Markdown version](/en/publications/fm/issues/2016/12/31/addressing-fiscal-challenges-to-reduce-economic-risks/index.md)
- [Structured JSON version](/en/publications/fm/issues/2016/12/31/addressing-fiscal-challenges-to-reduce-economic-risks/index.json)
- [Bundle manifest](/en/publications/fm/issues/2016/12/31/addressing-fiscal-challenges-to-reduce-economic-risks/bundle-manifest.json)

## Bibliographic details
- Published: September 20, 2011
- Series: Fiscal Monitor

---

### Overview and purpose
- 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.
- Publication date: September 2011.

### Key cross-cutting assessment
- Despite progress in addressing key fiscal weaknesses in many countries, significant policy challenges remain in advanced, emerging, and low-income economies.
- Downside risks to growth have increased, altering the environment for fiscal policy decisions.
- The appropriate pace of adjustment in the short run depends, for each country, on:
  - the intensity of the market pressure it confronts,
  - the magnitude of the risks to growth it faces,
  - the credibility of its medium-term program.

### Advanced economies
- Many advanced economies face very large adjustment needs to reduce risks related to high debt ratios.
- The euro area needs to:
  - sustain fiscal consolidation,
  - minimize its growth fallout,
  - address concerns about the adequacy of crisis resolution mechanisms.
- In Japan and the United States, the report emphasizes the need for sufficiently detailed and ambitious plans to reduce deficits and debts to prevent credibility from weakening.
- Figures and tables referenced for advanced economies include:
  - G-7 Sovereign Bond Yields
  - Sovereign Bond Yield Spreads over German Bunds
  - Fiscal Fundamentals in the G-7 Economies plus Spain, 2011
  - Advanced Economies: Average Bond Maturity
  - Selected Advanced Economies: General Government Gross Debt
  - Advanced Economies: Change in Overall Balance and General Government Gross Debt, 2010–11
  - Advanced Economies: Decomposition of 2011 Debt Accumulation
  - Cyclically Adjusted Primary Balance That Needs to Be Maintained in 2020–30 to Achieve Debt Target by 2030
  - Largest Average Primary Surplus over a 10-Year Period

### Emerging economies
- Many emerging economies need to make faster progress in strengthening fiscal fundamentals before cyclical factors or spillovers from advanced economies turn against them.
- Figures and tables referenced for emerging economies include:
  - Emerging Economies: Median 5-Year CDS Spreads
  - Emerging Economies: Differences in Cyclically Adjusted Primary Balances, 2011, Compared with the Precrisis Period
  - Determinants of Domestic Bond Yields in Emerging Economies
  - Comparing Fiscal Fundamentals across Emerging Economies, 2011
  - Selected Emerging Economies: Gross Financing Needs, 2011–12
  - Emerging Economies: Change in Cyclically Adjusted Primary Balance and in Output Gap, 2011

### Low-income countries
- Low-income countries need to rebuild fiscal buffers while addressing spending needs.
- Specific topics and analyses include:
  - Global Fuel and Food Price Shocks and Fiscal Performance in Low-Income Countries
  - Confronting Trade-Offs: Accommodating Spending Pressures in Low-Income Countries
  - Adjusting Public Capital Stock for Investment Inefficiency

### Debt legacy and fiscal sustainability
- The report examines how long it will take to lower public debt and assesses the legacy of the crisis on public finances.
- Appendixes include methodological analyses such as:
  - The Importance of Monitoring Both Gross and Net Debt
  - Stock-Flow Adjustments and Their Determinants
  - Methodological and Statistical Appendix
- Tables and indices relevant to debt and sustainability:
  - The Fiscal Indicators Index
  - Fiscal Indicators Index by Region, 2001–11
  - Components of the Fiscal Indicators Index, 1996–2011
  - Assessment of Fiscal Sustainability Risks, 2011
  - Fiscal Monitor Database and Statistical Tables (General Government Balance, Primary Balance, Cyclically Adjusted Balances, Expenditure, Revenue, Gross Debt, Net Debt, Structural Fiscal Indicators)

### Notable special topics, boxes, and supporting material
- Boxes and case analyses highlighted in the report include:
  - United States: Government-Sponsored Enterprises and Contingent Liabilities
  - Risks to the Baseline
  - Fiscal Developments in Oil-Producing Economies
  - Financial Sector Support and Recovery to Date
  - "Fiscal Devaluation": What Is It—and Does It Work?
  - Insights for Privatization Plans from Previous Large Episodes
- Technical information and user guidance provided:
  - Using PDF Files
  - Using CSV Files
  - Viewing Webcasts
  - Email notification sign-up

### Contents structure (selected)
- Preface
- Executive Summary
- 1. Introduction
- 2. Restoring Order: Reassuring Markets about Fiscal Sustainability in the Euro Area
- 3. The Dog That Didn't Bark (So Far): Low Interest Rates in the United States and Japan
- 4. Too Good to Be True? Fiscal Developments in Emerging Economies
- 5. The Legacy of the Crisis: How Long Will It Take to Lower Public Debt?
- 6. Confronting Trade-Offs: Accommodating Spending Pressures in Low-Income Countries
- 7. Conclusion
- Appendixes and Glossary
- Figures and Tables (numerous items listed for 2010–11 and 2011–12 data)

*IMF Fiscal Monitor -- Addressing Fiscal Challenges to Reduce Economic Risks, September 2011*

---

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---

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_Source: https://www.imf.org/en/publications/fm/issues/2016/12/31/addressing-fiscal-challenges-to-reduce-economic-risks_