Fiscal Policy and Long-Term Growth

April 20, 2015

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Fiscal Policy and Long-Term Growth, (USA: International Monetary Fund, 0) accessed November 21, 2024

Summary

This paper explores how fiscal policy can affect medium- to long-term growth. It identifies the main channels through which fiscal policy can influence growth and distills practical lessons for policymakers. The particular mix of policy measures, however, will depend on country-specific conditions, capacities, and preferences. The paper draws on the Fund’s extensive technical assistance on fiscal reforms as well as several analytical studies, including a novel approach for country studies, a statistical analysis of growth accelerations following fiscal reforms, and simulations of an endogenous growth model.

Subject: Developed countries, Economic growth, Economic models, Emerging markets, Fiscal policy, Fiscal reforms, Low-income developing countries, Public debt, Time series

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