Assessing Fiscal Sustainability in Theory and Practice
April 1, 2000
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Summary
The main purpose of this paper is to provide an overview of approaches to assessing fiscal sustainability. It summarizes the general analytical background, focusing on the present value budget constraint, which is the benchmark against which solvency is determined, tests of sustainability (including sustainability indicators), and sustainability and uncertainty. The paper then looks at the way in which fiscal sustainability has been assessed in different types of IMF work. Finally the link between fiscal and external sustainability is discussed.
Subject: External debt, Fiscal policy, Fiscal stance, Fiscal sustainability, Public debt
Keywords: debt ratio, debt stock, debt target, Fiscal stance, Fiscal sustainability, Government deficits and debt, net debt picture, pension debt, present value, present value budget constraint, sustainability calculation, sustainability indicators, tax ratio, WP
Pages:
27
Volume:
2000
DOI:
Issue:
081
Series:
Working Paper No. 2000/081
Stock No:
WPIEA0812000
ISBN:
9781451850352
ISSN:
1018-5941
