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Fiscal Implications of the Crisis (IMF)

In this IMF Staff Position Note, the Fund notices that the "crisis is having major implications for the public finances of most countries". In this sense, the paper adverts: "This somber fiscal outlook raises issues of fiscal solvency, and could eventually trigger adverse market reactions. This must be avoided: market confidence in governments’ solvency is a key source of stability and a precondition for economic recovery. Therefore, there is an urgent need for governments to clarify their exit strategy to ensure that solvency is not at risk".


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