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: Advanced Economies, Economic Crisis, Emerging Markets, Employment, Europe, Fiscal policy, Fiscal Stimulus, growth, IMF, International Monetary Fund, Public debt | Tagged: advanced economies, debt ratio, debts, deficits, emerging economies, Europe, financial markets, fiscal adjustment, fiscal cliff, France, government finances, growth, IMF, International Monetary Fund, Italy, Spain, tax policy, United States | 3 Comments »