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Debt Reduction, Fiscal Adjustment, and Growth in Credit-Constrained Economies [electronic resource] Baldacci, Emanuele..

Author/Creator:
Baldacci, Emanuele.
Publication:
Washington, D.C. : International Monetary Fund, 2013.
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 13/238.
IMF Working Papers; Working Paper No. 13/238
Format/Description:
Government document
Book
1 online resource (37 p.)
Local subjects:
Credit restraint. (search)
Cross country analysis. (search)
Debt consolidation. (search)
Debt reduction. (search)
Economic growth. (search)
Fiscal adjustments. (search)
Fiscal consolidation. (search)
Fiscal policy. (search)
General. (search)
Output growth. (search)
Public debt. (search)
Public Expenditures, Investment, and Finance. (search)
Taxation. (search)
Summary:
This paper assesses the effects of fiscal consolidations associated with public debt reduction on medium-term output growth during periods of private debt deleveraging. The analysis covers 107 countries and 79 episodes of public debt reduction driven by discretionary fiscal adjustments during 1980–2012. It shows that expenditure-based, front-loaded fiscal adjustments can dampen growth when there are credit supply restrictions. Instead, fiscal adjustments that are gradual and rely on a mix of revenue and expenditure measures can support output expansion, while reducing public debt. In this context, protecting public investment is critical for medium-term growth, as is the implementation of supply-side, productivity-enhancing reforms.
Notes:
Description based on print version record.
Contributor:
Baldacci, Emanuele.
Gupta, Sanjeev.
Mulas-Granados, Carlos.
Other format:
Print Version:
ISBN:
1475516509:
9781475516500
ISSN:
1018-5941
Publisher Number:
10.5089/9781475516500.001
Access Restriction:
Restricted for use by site license.
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