This paper presents Romania’s First Review Under the Stand-By Arrangement and a Request for Waiver and Modification of Performance Criteria. Output growth remains favorable and disinflation is proceeding. The current account deficit is in line with the program’s target, and the...

Mongolia has performed commendably under the Poverty Reduction Growth Facility arrangements. Executive Directors commended the prudent macroeconomic policies, low inflation, and reduction in vulnerability. They stressed the need to strengthen the fiscal position, improve economic governance,...

We study the smoothing impact of fiscal stabilizers (proxied by government expenditures or revenues) on business cycle volatility for a panel of EU countries in the period 1970-99. The results show that the business cycle volatility smoothing effect of fiscal stabilizers may revert at high...

The Austrian economy performed well, but long-term problems were unaddressed. Austria has weathered the slump well. The government's economic policy priorities and recent achievements have been commendable. Tax reform will help improve the economy's long-term growth potential. Successful reform...

This 2002 Article IV Consultation for Norway highlights that the mainland GDP growth edged up to an estimated 1.4 percent in 2002, from 12 percent in 2001, driven by strong consumption growth. Mainland investment and traditional exports slackened, as a result of weak external demand, high real...

The Swedish economy recovered from the crisis, assisted by a sizable fiscal stimulus. Executive Directors commended the fiscal and monetary frameworks, skillful and proactive management of monetary policy of the Riksbank, the soundness of the financial system, and stressed the need to accelerate...

Economic activity stagnated in the first half of 2003, but recent indicators point to a gradual recovery. On product markets, there was agreement that progress had been secured over recent years, but also that Italy continued to suffer from insufficient competition in a number of protected...

The 2003 Article IV Consultation discussions took place against a backdrop of serious concerns about the health and prospects for the economy. The authorities saw the revised policy strategy as providing an important boost to confidence and the right balance of supply-side initiatives and...

Over the past several years, implementation of IMF recommendations has been lacking not so much in intention as in pace and timing owing to political economy considerations and a strong social preference for publicly provided services. The discussions focused on how to foster a durable economic...

This paper provides a perspective on how the IMF assesses a “sound fiscal policy,” focusing principally on industrial and emerging market economies. It observes six central criteria: the short-term fiscal policy stance, with greater emphasis on automatic stabilizers than discretionary fiscal...