Top Five Policy Priorities to Brighten America’s Economic Future

2017-04-14T01:51:56-04:00November 5, 2014|

Deniz IganBy Deniz Igan

(version in Español)

There was a time in the not-so-distant past when science fiction could make us look forward to a better world. We had uplifting visions of the future in shows like Star Trek and Back to the Future. Today, the menu of options only offers a dystopian world ruined by poverty and violence (think The Hunger Games, Divergent, or Elysium).

It sure is easy to get pessimistic these days. Six years after the financial crisis, the recovery in the United […]

Public Finances Are on the Mend, but No Clean Bill of Health

2017-04-14T02:02:37-04:00April 9, 2014|

By Sanjeev Gupta and Martine Guerguil

(Version in Español FrançaisРусский中文, and 日本語)

We’ve had a spate of good news on the economic front recently. Does this mean that we are finally out of the fiscal woods? According to our most recent Fiscal Monitor report, not yet, as public debt remains high and the recovery uneven.

First, the good news. The average deficit in advanced economies has halved since the 2009 peak. The average debt ratio […]

Still Some Hurdles On The Fiscal Path

2017-04-14T02:15:53-04:00October 9, 2013|

Martine GuerguilBy Martine Guerguil

(Versions in 中文, Français日本語, Русский, and Español)

Five years into the crisis, the fiscal landscape remains challenging. On the positive side, deficit-cutting efforts and the first signs of recovery reduced the fiscal stress felt in many advanced economies; but debt ratios often remain at historical peaks. At the same time, slowing growth and rising borrowing costs, combined with unabated demands for improved public services, puts pressure on government budgets in emerging market […]

The Fiscal Milestone: Achievements, Fatigue, and Prospects

2017-04-15T13:55:05-04:00April 16, 2013|

Fiscal Monitor

By Carlo Cottarelli

(Versions in عربي 中文, 日本語, and Español)

The 2008–09 global economic crisis pushed public debt ratios of advanced economies to levels never seen before during peacetime. These high debt levels expose countries to a loss of market confidence and, ultimately, damage long-term growth prospects.  Since 2010 advanced economies have been on a journey: the goal is to bring their public finances back to safer […]

Taking Stock: Public Finances Now Stronger in Many Countries

2017-04-15T14:01:32-04:00October 9, 2012|

The slow global recovery is making fiscal adjustment more difficult around the world, but this doesn’t mean that little has been accomplished. In fact, significant progress in many countries has been made during the past two years in strengthening their fiscal accounts after the 2008–09 deterioration.

U.S. Fiscal Policy: Avoiding Self-Inflicted Wounds

2017-04-15T14:04:18-04:00August 8, 2012|

In late 2012 or early 2013 the U.S. federal government will again reach a statutory borrowing limit and will not be able to issue additional debt. Why is this a problem? First, because the federal government is spending considerably more than it collects in taxes; and second, because spending and tax collections are not synchronized. As a result, if the ceiling is not raised in time, the government would need to cut spending drastically, curtailing important government functions, with detrimental effects on output and employment. And just the mere possibility that the government might have to delay a payment on a bond could unsettle financial markets.
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