Fiscal Monitor, April 2013: Fiscal Adjustment in an Uncertain World


    Continued progress in reducing advanced economy deficits and a gradually improving external environment have lowered short-term fiscal risks, according to this issue, but global prospects nevertheless remain subdued, and many advanced economies face a lengthy, difficult, and uncertain path to fiscal sustainability. Though many advanced economies are now close to achieving primary surpluses that will allow them to stabilize their debt ratios, this is only a first step, as merely stabilizing advanced economy debt at current levels would be detrimental to medium- and longer-term economic prospects. The key elements of the required policy package are well known: foremost among them is setting out—and implementing—a clear and credible plan to bring debt ratios down over the medium term. Debt dynamics have remained relatively positive in most emerging market economies and low-income countries, and most plan to continue to allow the automatic stabilizers to operate fully, while pausing the underlying fiscal adjustment process. Those with low general government debt and deficits can afford to maintain a neutral stance in response to a weaker global outlook. But countries with relatively high or quickly increasing debt levels are exposed to sizable risks, especially once effective interest rates rise as monetary policy normalizes in the advanced economies and concessional financing from advanced economies declines. The widespread use of energy subsidies makes commodity prices an additional source of vulnerability in many emerging market and low-income economies; subsidy reform, higher consumption taxes, and broadening of tax bases would help support consolidation efforts.

    View more

    Number of Pages: 92
    Format(s): Ebook - ISBN: 9781557757715
    Publication Date:
    Listed in: International economics

    Books by International Monetary Fund. Fiscal Affairs Dept.

    Ebook (ePub)

    RRP: £26.11

    Total: £26.11

    Save: £0.00 per copy!

    Currently out of stock

    Books TV & Movies

    You might also like...

    Latest from the blog

    Fantastic new recipe book from Sabrina Ghayour 'Sirocco'

    Sabrina Ghayour's long awaited second recipe book Sirocco is out this month and is a great follow up to Persianna. Read article

    Ten Great Bedtime Reads from The Great British Bookshop and Aspace

    We have teamed up with Aspace ( who create beautiful room for Children to bring you 10 great bedtime reads for your little ones. Read article

    Latest from Twitter

    • @TheGBBookshop - 4 years ago

      Lottery funding for dementia reading project £2m pledged for Reading Agency scheme to pair readers with dementia sufferers

      @TheGBBookshop - 4 years ago

      Harry Potter and the Cursed Child has held on to the number one spot for a sixth week #HarryPotter #CursedChild @littlebrown @pottermore

    • @TheGBBookshop - 4 years ago

      @thebookseller @MartinaCole @Jeffrey_Archer @Foyles

      @TheGBBookshop - 4 years ago

      Frith wins inaugural Klaus Flugge Prize for illustration

    • @TheGBBookshop - 4 years ago

      RT @Gue_de_Bost: #Dordogneholidaycottage available Sept tweet to book for more info

      @TheGBBookshop - 4 years ago

      The editor is just back from france @HomeAwayUK!