Do IMF-Supported Programs Help Make Fiscal Adjustment More Durable?

Soojin Moon and Ales Bulir

No 2003/038, IMF Working Papers from International Monetary Fund

Abstract: This paper investigates fiscal developments in 112 countries during the 1990s. It finds that, while the overall fiscal balance improved in most of them, the composition of this improvement differed. In nonprogram countries, revenues increased modestly and expenditure declined sharply, while in program countries both revenue and expenditure declined. However, in countries with programs that included structural conditions the adjustment was effected primarily through sharp expenditure compression. We did not find evidence of a statistically significant impact of IMF conditionality. Morever, fiscal improvements are strongly influenced by cyclical factors

Keywords: WP; program country; IMF-supported program; IMF program performance variable; IMF-supported programs; conditionality; fiscal policy; general evaluation estimator; IMF program dummy; counterfactual policy; program stoppage; expenditure compression; Fiscal consolidation; Fiscal stance; Fiscal conditionality; Real interest rates; Sub-Saharan Africa; Africa; Asia and Pacific (search for similar items in EconPapers)
Pages: 45
Date: 2003-02-01
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Citations: View citations in EconPapers (14)

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