Fiscal Adjustment in IMF-Supported Programs

International Monetary Fund. Independent Evaluation Office

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International Development and Aid Global Financial Crisis and Policies Fiscal Policies and Political Economy

Abstract

Using a cross-country sample of 169 IMF-supported programs and detailed studies of 15 programs, this evaluation report examines various aspects of fiscal adjustment in IMF-supported programs. It presents evidence that does not support some critics’ view that IMF-supported programs typically adopt a one-size-fits-all approach to fiscal adjustment, nor the perception that programs always involve austerity by targeting reductions in public spending. The report also proposes a number of recommendations for IMF surveillance and program design in the future.

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References

2003Globalization and Its Discontents 1998Economic Crises: Evidence and Insights from East Asia 1999Budget institutions and fiscal performance in Latin America 2002The Effectiveness of Fiscal Policy in Stimulating Economic Activity: A Review of the Literature 1995Fiscal Expansions and Fiscal Adjustments in OECD Countries 1999IMF-supported programs in Indonesia, Korea, and Thailand : a preliminary assessment 1998Do IMF-Supported Programs Work? A Survey of the Cross-Country Empirical Evidence 2000Social Issues in IMF-Supported Programs

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