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

February 1, 2003

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Format: Chicago

Soojin Moon, and Ales Bulir. Do IMF-Supported Programs Help Make Fiscal Adjustment More Durable?, (USA: International Monetary Fund, 2003) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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

Subject: Expenditure, Financial services, Fiscal conditionality, Fiscal consolidation, Fiscal policy, Fiscal stance, Real interest rates

Keywords: Africa, Asia and Pacific, Conditionality, Counterfactual policy, Expenditure compression, Fiscal conditionality, Fiscal consolidation, Fiscal policy, Fiscal stance, General evaluation estimator, IMF program dummy, IMF program performance variable, IMF-supported program, IMF-supported programs, Program country, Program stoppage, Real interest rates, Sub-Saharan Africa, WP

Publication Details

Pages:

45
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2003/038
Stock No:

WPIEA0382003
ISBN:

9781451845716
ISSN:

1018-5941

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