Experience with Large Fiscal Adjustments by George C.Tsibouris, Mark A. Horton, Mark J. Flanagan, and Wojciech S. Maliszewski published by IMF, indicated by Teresa Ter-Minassian (2006).
“There are instances when policymakers may have little option but to consider a sizable fiscal adjustment. In such circumstances, they may be confronted with questions such as, Can a large fiscal adjustment be implemented successfully? How is a large adjustment best designed and implemented? What will be its impact on the economy? This paper sheds light on these questions by describing the experience of countries that have undertaken large fiscal adjustments over the past three decades. It identifies preconditions, common policy approaches, and institutional arrangements underlying successful and unsuccessful adjustment episodes, thereby providing operational guidance to policymakers…”