Abstract
In response to the pandemic, fiscal policy has taken on a key role in macro-economic stabilization.
Contents
In response to the pandemic, fiscal policy has taken on a key role in macro-economic stabilization.
RETHINKING FISCAL: PUBLIC FINANCE AND FAIRNESS
A Fine Balancing Act
With fiscal policy having gained fresh prominence, governments must carefully calibrate their policies
Vitor Gaspar
Deciding When Debt Becomes Unsafe
Don’t expect easy answers. Projecting growth, deficits, and interest rates is just the beginning
Olivier Blanchard
Shining a Light on Debt
For economic recovery and crisis prevention, hidden liabilities and their terms must be revealed
Ceyla Pazarbasioglu and Carmen M. Reinhart
A Call for New Fiscal Rules
Advanced and emerging market economies alike need new criteria for debt sustainability
Arminio Fraga
Steady Prices, Sustainable Debt
With public debt set to remain high, price stability matters more than ever
Ricardo Reis
Fiscal Institutions and the Pandemic
Chile’s experience shows the value of building the right framework for fiscal policy
Felipe Larrain Bascuñan
Understanding the Social State
Its growth is a puzzle for modern economics but has deep evolutionary roots
Emmanuel Saez
Taxing for a New Social Contract
The pandemic has exposed the costs of tax injustice—now is the time to make it right
Alex Cobham
ALSO IN THIS ISSUE
The Education Pandemic
Learning losses from COVID-19 will cost us our future, unless we spend on education
Yamini Aiyar
Responsive Spending
African nations need to democratize management of public finances or risk electoral backlash
Ken Opalo
Meeting the Future
Belize, Colombia, and Ghana highlight innovation’s potential to strengthen public finances
Analisa R. Bala, Adam Behsudi, and Nicholas Owen
Adding Ethics to Public Finance
Moral psychologists point the way to garnering broader support for fiscal policies
Paolo Mauro
Tackling Inequality on All Fronts
A comprehensive mix of fiscal policies can curb inequalities at every stage where they emerge
David Amaglobeli and Celine Tevenot
Mapping the Unknown
Governments facing a fiscal crunch should seek out hidden assets
Ian Ball, John Crompton, and Dag Detter
Currency Revolution
Eswar Prasad explains how technology is transforming the nature of money
DEPARTMENTS
People in Economics
Inequity Detective
Prakash Loungani profiles Chicago’s Marianne Bertrand, an advocate for inclusive growth
In the Trenches >
Technology-Driven Development
Togo’s Cina Lawson views digitalization as key to her country’s development
Picture This
Global Inequalities
The big picture on wealth, income, ecological, and gender inequality
Andrew Stanley
Back to Basics
Value-Added Tax Continues to Expand
More countries are adopting the VAT, and its contribution to global revenue is rising
Ruud de Mooij and Artur Swistak
Book Reviews
Career and Family: Women’s Century-Long Journey toward Equity, Claudia Goldin
The Global Currency Power of the US Dollar: Problems and Prospects, Anthony Elson
Harry White and the American Creed, James M. Boughton
Currency Notes
Where Monarchs Reign Supreme
Mexico’s banknotes feature enchanting butterflies and an influential poet
Melinda Weir
FINANCE & DEVELOPMENT
A Quarterly Publication of the International Monetary Fund
EDITOR-IN-CHIEF:
Gita Bhatt
MANAGING EDITOR:
Maureen Burke
DEPUTY MANAGING EDITOR:
Peter Walker
SENIOR EDITORS:
Analisa Bala Adam Behsudi Nicholas Owen
ASSISTANT EDITOR:
Andrew Stanley
DIGITAL EDITOR
Rose Kouwenhoven
ONLINE EDITOR:
Rekia Ennaboulssi
PRODUCTION MANAGER:
Melinda Weir
COPY EDITOR:
Lucy Morales
ADVISORS TO THE EDITOR:
Ruchir Agarwal
Bernardin Akitoby
Celine Allard
Steven Barnett
Nicoletta Batini
Helge Berger
S. Pelin Berkman
Paul Cashin
Oya Celasun
Martin Čihák
Alfredo Cuevas
Era Dabla-Norris
Mame Astou Diouf
Rupa Duttagupta
Hamid Faruqee
Davide Furceri
Deniz Igan
Kenneth Kang
Subir Lall
Raphael Lam
Christian Mumssen
Papa N’Diaye
Mahvash Qureshi
Uma Ramakrishnan
Daria Zakharova
© 2022 by the International Monetary Fund. All rights reserved. For permission to reproduce any F&D content, submit a request via online form (www.imf.org/external/terms.htm) or by e-mail to copyright@imf.org. Permission for commercial purposes also available from the Copyright Clearance Center (www.copyright.com) for a nominal fee.
Opinions expressed in articles and other materials are those of the authors; they do not necessarily reflect IMF policy.
Subscriber services, changes of address, and advertising inquiries:
IMF Publication Services
Finance & Development
PO Box 92780
Washington, DC 20090, USA
Telephone: (202) 623–7430
Fax: (202) 623–7201
E-mail: publications@imf.org
Postmaster: send changes of address to Finance & Development, International Monetary Fund, PO Box 92780, Washington, DC 20090, USA.
The English edition is printed at Dartmouth Printing Company, Hanover, NH.
Finance & Development is published quarterly by the International Monetary Fund, 700 19th Street NW, Washington, DC 20431, in English, Arabic, Chinese, French, Russian, and Spanish. English edition ISSN 0145–1707
FSC FPO
