Fiscal Pie (Blanchard and Cottarelli)

How to bake a (cr)edible medium-term fiscal pie, by Olivier Blanchard and Carlo Cottarelli. How can governments have their cake and eat it too? How can fiscal policy provide sufficient support to economic activity, and reassure markets that fiscal solvency is not at risk?… But can countries limit frontloading and still achieve credibility? Yes, but baking the right fiscal pie is likely to require a number of ingredients. Of course, the exact recipe depends on country circumstances.