We’ve just updated our latest assessment of the state of government finances, debts, and deficits in advanced and emerging economies.
Fiscal adjustment is continuing in the advanced economies at a speed that is broadly appropriate, and roughly what we projected three months ago. In emerging economies there’s a pause in fiscal adjustment this year and next, but this too is generally appropriate, given that many of these countries have low debt and deficits.
The improvement in fiscal conditions in many advanced economies is welcome, but it’s going to take more than lower deficits to get countries under market pressure out of the crosshairs.
Filed under: Fiscal Stimulus, Economic Crisis, Advanced Economies, Emerging Markets, International Monetary Fund, IMF, growth, Europe, Fiscal policy, Public debt, Employment | Tagged: deficits, Europe, IMF, International Monetary Fund, Spain, tax policy, United States, advanced economies, emerging economies, financial markets, growth, fiscal adjustment, Italy, France, fiscal cliff, government finances, debts, debt ratio | 3 Comments »