Return to Fiscal Rectitude (Tanzi)

The return to fiscal rectitude after the recent escapate by Vito Tanzi. The paper was presented in September in the Annual Research Conference (ARC) at the Economic Commission in Brussels. The paper has briefly discussed some economic relations associated with high fiscal deficit and public debt. It has concluded that it is high time to begin introducing policies that would restrain and reverse the fiscal deterioration and will set the countries on road that in the medium run would lead to bring fiscal sustainability. Indicated by Tanzi, the paper has also argued that the fiscal correction will have to come mostly, though not exclusively, from spending cuts. See PDF attached.