Fiscal Policy Response to External Crises the Case of Moldova 1998-2010

Driton Qehaja

No 2012/082, IMF Working Papers from International Monetary Fund

Abstract: External shocks pose major challenges to fiscal policy makers through lower output and large fiscal imbalances. This paper analyzes the case of Moldova, which faced parallel crises a decade apart: the Russian crisis of 1998 and the global financial crisis of 2008-2009. The country went through large fiscal adjustments during these crises and launched important fiscal reforms. The paper reviews the crises and reform experience. In particular, it aims to explain the motivation for reforms, describe reform design and implementation, and provide an understanding of their outcomes. The paper also catalogues the form and size of international assistance for Moldova.

Keywords: WP; wage bill; tax revenue; excise tax; tax system; expenditure policy; Moldova; Fiscal policy; structural fiscal balance; international assistance; retirement age; system reform; government policy; government's expenditure policy; authorities' reform; government risk; government intervention; wage system; taxable income; Corporate income tax; Pension spending; Central and Eastern Europe; Western Europe; Europe; Global (search for similar items in EconPapers)
Pages: 33
Date: 2012-03-01
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Citations: View citations in EconPapers (1)

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