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Balancing Fiscal Policy Risks

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Balancing Fiscal Policy Risks Synopsis

Overall, fiscal risks remain elevated, according to this issue of the Fiscal Monitor, although there are signs that in some key respects they are less acute than six months ago. Though past efforts with fiscal consolidation are beginning to bear fruit, debt ratios in many advanced economies are at historic levels and rising, borrowing requirements remain very large, financial markets continue to be in a state of alert, and downside risks to the global economy predominate. In this uncertain environment, fiscal policy must find the right balance between exploiting short-term space to support the fragile recovery and rebuilding longer-term space by advancing fiscal consolidation. Against that background, the issue examines in more detail the concept of fiscal space, or the scope that policymakers have to calibrate the pace of fiscal adjustment without undermining fiscal sustainability.

About This Edition

ISBN: 9781616352486
Publication date:
Author: International Monetary Fund
Publisher: International Monetary Fund
Format: Paperback
Pagination: 82 pages
Series: Fiscal Monitor
Genres: Public finance and taxation

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