IV Challenges to Fiscal Management
Author:
Mrs. O. Liu
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Language:
English
Print Publication Date:
27 Aug 2001
Keywords:
OP; crisis; fiscal policy stance; countercyclical fiscal policy; policy option; targeted budget surplus; fiscal policy response; Budget planning and preparation; Fiscal rules

Abstract

Alesson from the Asian crisis is that the effectiveness of Malaysia’s fiscal policy in demand management may benefit from greater flexibility. While Malaysia’s tradition of fiscal prudence provided a buffer against adverse shocks during the crisis, structural rigidities in public finances rendered fiscal policy less responsive to the changing economic environment. A key challenge to fiscal management is to make it flexible enough to function as an effective countercyclical tool within the framework dedicated to maintaining long-term fiscal sustainability.

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Cover Malaysia
Malaysia
From Crisis to Recovery
ISBN:
9781589060470
ISSN:
0251-6365
Publication Date:
27 Aug 2001
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781589060470.084
Pages:
101