IMF Staff Position Notes

A Strategy for Renormalizing Fiscal and Monetary Policies in Advanced Economies

Author/Editor:

Carlo Cottarelli ; José Vinãls

Publication Date:

September 22, 2009

Electronic Access:

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Summary:

In response to the worst economic crisis since the 1930s, government budgets and central banks have provided substantial support for aggregate demand and for the financial sector. In the process, fiscal balances have deteriorated, government liabilities and central bank balance sheets have been expanded, and risks of future losses for the public sector have increased.

Series:

Staff Position Note No. 2009/022

Subject:

Banking Fiscal policy Fiscal stance Inflation Price stabilization Prices Public debt