Template-Type: ReDIF-Paper 1.0
Author-Name: Sakai  Ando
Author-Name-First: Sakai 
Author-Name-Last: Ando
Author-Email: sando@imf.org
Author-Workplace-Name: International Monetary Fund
Author-Name: Prachi  Mishra
Author-Name-First: Prachi 
Author-Name-Last: Mishra
Author-Email: prachi.mishra@ashoka.edu.in
Author-Workplace-Name: Ashoka University
Author-Name: Nikhil  Patel
Author-Name-First: Nikhil 
Author-Name-Last: Patel
Author-Email: npatel@imf.org
Author-Workplace-Name: International Monetary Fund
Author-Name: Adrian  Peralta- Alva
Author-Name-First: Adrian 
Author-Name-Last: Peralta- Alva
Author-Email: aperalta-alva@img.org
Author-Workplace-Name: International Monetary Fund
Author-Name: Andrea F.  Presbitero
Author-Name-First: Andrea F. 
Author-Name-Last: Presbitero
Author-Email: apresbitero@imf.org
Author-Workplace-Name:  International Monetary Fund and CEPR
Title: Fiscal Consolidation and Public Debt
Abstract: High public debt is urging policy makers to consider strategies to rebuild buffers and preserve debt sustainability. We study whether—and under which conditions—fiscal consolidation is likely to be associated with a durable reduction in public debt to GDP ratios. Our findings based on a sample of advanced and emerging countries indicate that the average fiscal consolidation has a minimal effect. However, discretionary consolidations (or an increase in the primary balance to GDP
beyond what is driven by business cycle considerations) implemented during economic upturns or in scenarios where they can “crowd in” private investment, are likely to be associated with sustained reductions in debt ratios.
length: 56
Creation-Date: 20241014
Revision-Date: 
Publication-Status: 
File-URL:/www/wwwashokaeduin_628/public/dp/RePEc/ash/wpaper/paper126_0.pdf
File-Format: Application/pdf 
Number: 126
Keywords: Fiscal consolidation
Keywords: Fiscal policy
Keywords: Public debt
Keywords: Structural VAR
Handle: RePEc:ash:wpaper:126