## Experience with Large Fiscal Adjustments

_Occasional Papers, June 14, 2006_

## Source details

**Canonical URL:** [Experience with Large Fiscal Adjustments](https://www.imf.org/en/publications/occasional-papers/issues/2016/12/31/experience-with-large-fiscal-adjustments-18309)

## Other formats

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## Bibliographic details
- Authors: Mark A Horton, George C. Tsibouris, Wojciech Maliszewski, Mark J Flanagan
- Published: June 14, 2006
- Series: Occasional Papers
- DOI: https://doi.org/10.5089/9781589064584.084

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### Summary and research questions
- When policymakers have little option but to consider a sizable fiscal adjustment, they are confronted by the following questions:
  - Can a large fiscal adjustment be implemented succesfully?
  - How is a large adjustment best designed and implemented?
  - What will be its impact on the economy?
- This Occasional Paper addresses these questions by describing the experience of countries that have undertaken large fiscal adjustments in the last three decades.
- The paper provides operational guidance to policymakers by identifying preconditions, common policy approaches, and institutional arrangements underlying successful and unsuccessful adjustment episodes.

### Substantive findings, guidance, and themes
- Operational guidance centers on:
  - Identifying preconditions for successful large fiscal adjustments.
  - Common policy approaches used in adjustment episodes.
  - Institutional arrangements correlated with successful and unsuccessful episodes.
- Subject areas covered:
  - Expenditure
  - Fiscal consolidation
  - Fiscal policy
  - Fiscal stance
  - Public debt
  - Revenue administration
- Keywords and methods signaled in the source:
  - adjustment design, consolidation episode, expenditure measure, Fiscal consolidation, Fiscal stance
  - regional/coverage tags: Africa, Baltics, Western Europe, Global
  - analytic/technical tags: event study technique, IMF staff estimate, macroeconomic outcome, country authorities, OP

### Publication and metadata
- Title: Experience with Large Fiscal Adjustments
- Authors: Mark A Horton, George C. Tsibouris, Wojciech Maliszewski, Mark J Flanagan
- Date: June 14, 2006
- Series: Occasional Paper No. 2006/003
- Issue: 003
- Volume: 2006
- Pages: 51
- DOI: https://doi.org/10.5089/9781589064584.084
- ISBN: 9781589064584
- ISSN: 0251-6365
- Stock No: S246EA

*Source: Experience with Large Fiscal Adjustments, International Monetary Fund, 2006.*

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_Source: https://www.imf.org/en/publications/occasional-papers/issues/2016/12/31/experience-with-large-fiscal-adjustments-18309_