Chapter 5. Fiscal Consolidation: Country Experiences and Lessons from the Empirical Literature
Author:
Mr. Joel Chiedu Okwuokei
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Language:
English
Print Publication Date:
06 May 2014
Keywords:
BOOK; spending multiplier; debt restructuring; debt accumulation; debt level; government finances; coalition government; debt ratio; expenditure measure; country experience; Fiscal stance; Fiscal consolidation

Abstract

Governments facing high debt levels and seeking to undertake fiscal consolidation are often confronted with a number of interrelated questions. What promotes a successful fiscal consolidation? How large should the adjustment be and how fast? Should one adjust now or later, and what are the consequences of postponing adjustment? Should one cut expenditures, raise revenues or do both? Which components of expenditures or revenues should one adjust, and does the composition of adjustment really matter? Would the adjustment be self-defeating? Is there a political price for fiscal adjustment?

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Cover Caribbean Renewal
Caribbean Renewal
Tackling Fiscal and Debt Challenges
ISBN:
9781484369142
Publication Date:
06 May 2014
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781484369142.071
Pages:
314