Update Fiscal Exit Strategies (FAD/IMF)

A status update on fiscal exit strategies by Fabian Bornhorst, Andrea Lemgruber, Joong B. Shin, among others, published by IMF. This paper reviews the medium-term plans of 25 countries – the G20 plus six others with large adjustment needs – and finds that most of them have made reasonable progress in defining these strategies. Nevertheless, strategies fall short in some areas, including committing to long-term debt targets, spelling out adjustment measures in detail, and tackling rising health care costs.