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Fiscal Adjustment (Cottarelli)

Fiscal adjustment: Too much of a good thing? by Carlo Cottarelli published by VOXEU. “Almost everyone agrees that the fiscal accounts of several advanced economies are in a pretty bad shape and need to be strengthened. But how rapid should the adjustment be in the present circumstances? At times over the last couple of years the IMF called on countries to step up the pace of adjustment when we thought they were moving too slowly. This column says that in the current environment, some might be going fast.” 


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