Series: IMF Working Papers
Author(s): Olivier Blanchard , and Daniel Leigh
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 03 January 2013
Keywords: government expenditure, output fluctuations, fiscal consolidation, fiscal multipliers, growth forecast, fiscal balance, General, General, Forecasts of Budgets, Deficits
This paper investigates the relation between growth forecast errors and planned fiscal consolidation during the crisis. We find that, in advanced economies, stronger planned fiscal consolidation has been associated...