Reassessing the Role and Modalities of Fiscal Policy in Advanced Economies
International Monetary Fund
Abstract
International Monetary Fund
Abstract
This paper investigates how developments during and after the 2008–09 crisis have changed economists’ and policymakers’ views on: (i) fiscal risks and fiscal sustainability; (ii) the effectiveness of fiscal policy as a countercyclical tool; (iii) the appropriate design of fiscal adjustment programs; and (iv) the role of fiscal institutions.
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This paper investigates how developments during and after the 2008–09 crisis have changed economists’ and policymakers’ views on: (i) fiscal risks and fiscal sustainability; (ii) the effectiveness of fiscal policy as a countercyclical tool; (iii) the appropriate design of fiscal adjustment programs; and (iv) the role of fiscal institutions.
Key concepts: Fiscal sustainability, Fiscal union, Fiscal policy, Economics, Modalities, Fiscal imbalance, Fiscal adjustment, Macroeconomics