This paper presents an overview of recent U.S. fiscal developments and discusses possible implications of the sharp turn around in the government’s fiscal position. Against this back ground, it also reviews key policy challenges that will need to be addressed to cope with the mounting...

For thirty years prominent voices have advocated a policy of starving the beast cutting taxes to force government spending cuts. This paper analyzes the macroeconomic and welfare consequences of this policy using a two-country general equilibrium model. Under several strong assumptions the...

We explore the underlying determinants of the macroeconomic effects of fiscal policy and tax and social security reform using the Global Fiscal Model (GFM). We show that the planning horizon of consumers, access to financial markets, and the elasticity of labor supply, as well as the...

This 2004 Article IV Consultation highlights that with growth proceeding at a steady pace of 2.6 percent during 2004, the Spanish economy has weathered the slowdown in the European Union relatively well. The external current account is estimated to have widened to some 4¼ percent of GDP in...

This paper seeks to draw lessons from the IMF’s experience in handling financial crises around the globe over the past ten years that are relevant to the challenges faced by countries in Latin America, especially in the wake of the recent crisis in Argentina. Experience suggests that...

This 2005 Article IV Consultation highlights that economic activity in Austria gathered speed in 2004, supported mostly by strong export performance. Growth of real GDP rose to 2.2 percent in 2004. Consumption growth was modest, in view of small gains in employment and nominal wage growth barely...

Since the conclusion of the last Article IV Consultation in October 2001, Georgia's macroeconomic performance has been encouraging. The 2003 Article IV Consultation and program discussions were held against the backdrop of protracted deviations from the IMF-supported program. Discussions with...

This paper on the Staff-Monitored Program (SMP) on Djibouti explains economic developments and policy discussions. Djibouti faces important challenges to reduce widespread poverty. Since the mid-1990s, the government has been engaged in adjustment and reform programs to restore macroeconomic...

This paper presents an Ex Post Assessment of Longer-Term Program Engagement for Sierra Leone. Sierra Leone has had almost continuous involvement with IMF programs since 1994 under a variety of arrangements. All the IMF-supported programs in Sierra Leone during 1994–2004 had the same...

The Poverty Reduction Strategy Papers (PRSPs) on Georgia review macroeconomic, structural, and social policies in support of growth and poverty reduction, as well as associated external financing needs and major sources of financing. The sustainability of high economic growth is a positive...