The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This paper presents an overview of the different methodologies that can be used to measure the amount of available slack in an economy. A comparison of these alternatives reveals that the evolution of the Nairu is crucial for understanding recent cyclical developments in the French economy. A comprehensive reform of the personal income tax has been assessed. This paper analyzes the expansion of high-tech activities, and reviews a number of policy issues connected with the development of an information and communication technology-based new economy.