A Status Update on Fiscal Exit Strategies

67 Pages Posted: 1 Feb 2011

See all articles by Fabian Bornhorst

Fabian Bornhorst

International Monetary Fund (IMF)

Nina Budina

World Bank

Giovanni Callegari

International Monetary Fund

Asmaa A ElGanainy

Georgia State University; International Monetary Fund (IMF)

Raquel Gomez Sirera

affiliation not provided to SSRN

Andrea Lemgruber

affiliation not provided to SSRN

Andrea Schaechter

International Monetary Fund (IMF)

Joong Shin

SSRN - Current SSRN contractors

Date Written: December 2010

Abstract

With a modest recovery in the global economy underway, and amid rising concerns about the sharp increase in government debt in several countries, debate has increasingly focused on the need to identify and implement fiscal exit strategies. This paper reviews the medium-term plans of 25 countries - the G20 plus six others with large adjustment needs - and finds that most of them have made reasonable progress in defining these strategies. Nevertheless, strategies fall short in some areas, including committing to long-term debt targets, spelling out adjustment measures in detail, and tackling rising health care costs.

Keywords: Cross country analysis, Economic recovery, Fiscal consolidation, Fiscal policy, Government expenditures, Group of Twenty, Medium-term strategy

Suggested Citation

Bornhorst, Fabian and Budina, Nina and Callegari, Giovanni and El-Ganainy, Asmaa and El-Ganainy, Asmaa and Gomez Sirera, Raquel and Lemgruber, Andrea and Schaechter, Andrea and Shin, Joong, A Status Update on Fiscal Exit Strategies (December 2010). IMF Working Paper No. 10/272, Available at SSRN: https://ssrn.com/abstract=1751384

Fabian Bornhorst (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Nina Budina

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Giovanni Callegari

International Monetary Fund ( email )

700 19th Street, NW
Washington, DC 20431
United States

Asmaa El-Ganainy

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Raquel Gomez Sirera

affiliation not provided to SSRN

Andrea Lemgruber

affiliation not provided to SSRN

Andrea Schaechter

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Joong Shin

SSRN - Current SSRN contractors ( email )

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