A Strategy for Renormalizing Fiscal and Monetary Policies in Advanced Economies

Carlo Cottarelli and José Vinãls

No 2009/022, IMF Staff Position Notes from International Monetary Fund

Abstract: In response to the worst economic crisis since the 1930s, government budgets and central banks have provided substantial support for aggregate demand and for the financial sector. In the process, fiscal balances have deteriorated, government liabilities and central bank balance sheets have been expanded, and risks of future losses for the public sector have increased.

Keywords: SPN; central bank; monetary policy; economy; interest rate; balance sheet; debt ratio; monetary policy stance; debt surge; confidence crisis; central bank loss; debt reduction target; debt dynamics decomposition; inflation expectation; full-blown debt crisis; financial support; crisis-response policy; debt maturity; debt reduction worth; Inflation; Fiscal stance; Price stabilization; Global (search for similar items in EconPapers)
Pages: 22
Date: 2009-09-22
References: Add references at CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=23304 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfspn:2009/022

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Position Notes from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().