Fiscal Implications of the Global Economic and Financial Crisis.

Format:

Book

Government document

Author/Creator:

International Monetary Fund.

Contributor:

International Monetary Fund. Fiscal Affairs Department.

Series:

Occasional Papers; Occasional Paper ; No. 2009/002

Occasional Papers

Language:

English

Physical Description:

1 online resource (96 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2009.

Summary:

The economic and financial crisis is affecting the fiscal accounts of virtually every country. Public sector support for the financial system, fiscal stimulus and the automatic stabilizers, as well as the revenue decline from the downturn in commodity and asset prices, are leading to sharp increases in deficits and debt stocks around the world. Expansionary fiscal policy continues to be necessary in the short term to stimulate economic recovery. But it is now essential that governments reassess the state of their public finances in light of the global crisis and adopt strategies that will ensure medium- and long-term fiscal sustainability. Many of the advanced economies most affected by the crisis are also those where age-related spending will increase markedly in the coming years, adding particular urgency to the need to identify medium-term consolidation strategies. This new paper, which focuses mainly on advanced and emerging market economies, employs projections based on the April 2009 World Economic Outlook to quantify the fiscal implications of the crisis for a cross-section of countries. The authors assess the post-shock fiscal balances and debt outlook, and suggest ways for governments to clarify their strategies for maintaining fiscal solvency.

Contents:

Cover; Contents; Preface; Abbreviations; I: Overview; II: Fiscal Implications of the Crisis: Direct Costs; Headline Support to Financial Sectors; Net Cost over the Medium Term; Boxes; 2.1. Fiscal Accounting Treatment of Support to the Financial Sector; Tables; 2.1. Headline Support for Financial and Other Sectors and Upfront Financing Need; Potential Total Cost of Implicit and Explicit Guarantees; III: Fiscal Implications of the Crisis: The Cost of the Recession; Automatic Stabilizers; Other Nondiscretionary Effects; 3.1. G-20 Countries: Contribution of Automatic Stabilizers

3.2. Loss of Fiscal Revenue Due to Commodity Price Movements3.3. G-20 Countries: Other Nondiscretionary Factors; Discretionary Responses to the Crisis; 3.4. G-20 Countries: Estimated Cost of Discretionary Measures; 3.5. G-20 Stimulus Measures, 2008-10; Figures; 3.1. Composition of Discretionary Fiscal Measures in G-20 Countries, 2008-10; IV: Fiscal Implications of the Crisis: Effects Through the Funded Component of the Pension System; Losses of Funded Pension Schemes; Risks for Fiscal Accounts; 4.1. Pension Fund Assets in OECD Countries; 4.2. Pension Plan Assets by Economy, End-2007

V: The Outlook for Public Finances in Light of the CrisisShort-Term Outlook; The Medium-Term Outlook and Risk Assessment; 5.1. G-20 Countries: Change in Fiscal Balances and Government Debt; 5.1. G-20 Countries: Outlook for Public Finances; 5.2. Impact of the Crisis on Public Finances: Contributing Factors; 5.3. G-20 Advanced Countries: Evolution of Government Debt; 5.4. Lower Growth Scenario; 5.2. Public Finances; 5.5. Prolonged Slowdown Scenario; 5.6. Government Debt in Case of Prolonged Slowdown, Higher Interest Rate, and Contingent Liability Shock

VI: The Risk for Fiscal Solvency and the Appropriate Policy ResponseThe Level of Government Debt; 6.1. Long-TermGovernment Bond Yields and Spreads; The Dynamics of Government Debt: Current and Future Deficits; 6.1. Debt/GDP Stabilizing Primary Balance; 6.1. Historical Episodes of Major Accumulations and Decumulations of Government Debt; The Way Forward; 6.2. Selected Countries: Public Debt-to-GDP Ratio; 6.2. Debt and Primary Balance; 6.3. Fiscal Costs of Aging; 6.3. Population Aging in Emerging Market Countries, 2005 and 2050; 6.4. Advanced G-20 Countries: Government Debt

6.2. Post-Banking-Crisis Fiscal Consolidation: Finland and Sweden During the 1990s6.4. Emerging Economies: Selected Debt Reduction Episodes; 6.5. EU-5 Countries: Outlook for Fiscal Balance Versus 2006 Stability Program; 6.5. Net Present Value of Impact on Fiscal Deficit of Crisis and Aging-Related Spending; Appendixes; I. Reporting the Fiscal Impact of Financial Sector Support; A1.1. Statistical Treatment of Government Intervention (Under GFSM 1986); A1.2. Statistical Treatment of Government Intervention (Under GFSM 2001); II. Financial Sector Support Measures

A2.1. Upfront Gross Fiscal Cost and Estimated Recovery Rate

Notes:

Description based upon print version of record.

Description based on publisher supplied metadata and other sources.

ISBN:

9781462307807

1462307809

9781452765464

1452765464

OCLC:

870245456