1211. Global fiscal consolidation
- Author:
- Warwick McKibbin
- Publication Date:
- 05-2011
- Content Type:
- Working Paper
- Institution:
- Lowy Institute for International Policy
- Abstract:
- The build up in government debt in response to the 'great recession' has raised a number of policy dilemmas for individual countries as well as the world as a whole. Where the government fiscal stimulus was seen as necessary to restore confidence to markets and stimulate deteriorating economies in the aftermath of the 'great recession' by 2010 the massive fiscal stimulus programs and associated run-up in debt had, for many economies, become a confidence sapping exercise. This need for a change of fiscal policy stance has fuelled another debate that has two related aspects. One is the impact of fiscal consolidation on economies that are tightening and the flow-on effects to the world economy. The other debate is how much tightening there should be and how quickly.
- Topic:
- Debt, Economics, Global Recession, and Financial Crisis
- Political Geography:
- Asia and Australia/Pacific