Cover IMF Working Papers
Fiscal Objective in the Post IMF Program World: The Case of Albania
Author: Jiri Jonas
Series:
IMF Working Papers
Volume/Issue:
Volume 2010: Issue 077
Language:
English
Publication Date:
01 Mar 2010
DOI:
https://doi.org/10.5089/9781451982206.001
ISBN:
9781451982206
ISSN:
1018-5941
Pages:
29
Keywords:
WP; expenditure rule; foreign currency
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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The paper discusses the challenges facing Albania's fiscal policy following the graduation from the IMF programs. It argues that Albania's public debt remains too high and needs to be reduced. Strengthening the fiscal framework, including by introducing a numerical fiscal rule, could help achieve this objective. The paper discusses two alternative rules, with the objective of achieving a gradual decline in the public debt ratio. One rule would limit nominal expenditure growth, with a correction mechanism to guard against revenue slippages and other shocks. An alternative rule would limit the growth in nominal public debt.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund