Fiscal Challenges after the Global Financial Crisis : A Survey of Key Issues

The global financial crisis and the response to it have contributed to a sharp increase in public indebtedness in a large number of countries. While there have been episodes of high debt in the past, there are a number of long-term challenges today that are likely to complicate the implementation of sustainable fiscal policies in the coming years. Population aging and climate change are factors that are likely to contribute to rising fiscal pressures and the crisis has highlighted the risks and vulnerabilities stemming from reduced fiscal space. This paper argues that heightened fiscal challenges can only be dealt with successfully by adopting a long-term fiscal planning horizon. The paper analyzes a range of available policy tools that countries have used in the past to improve fiscal management. Particular attention is paid to the role of rules-based policies, improvements in the budget process, better accounting of long-term liabilities in the government budget, the deleterious effects of unproductive expenditures, and the painful trade-offs created by the crisis and the toolkit at hand to address them.

Bibliographic Details

Main Author:	Lopez-Claros, Augusto
Language:	English en_US
Published:	World Bank, Washington, DC 2014-03
Subjects:	ACCESS TO INFORMATION, ACCOUNTING, ADVANCED ECONOMIES, ASSET POSITION, BAILOUT, BALANCE SHEET, BANK DEPOSITS, BANKING CRISES, BANKING SECTORS, BANKING SYSTEM, BINDING CONSTRAINT, BOND, BOND TRADERS, BOOM GENERATION, BORROWING REQUIREMENT, BUDGET CONSTRAINT, BUDGET DEFICIT, BUDGET DEFICITS, BUDGET REVIEWS, BUDGETING, BUSINESS CYCLE, CAPITAL ACCOUNT, CAPITAL FLIGHT, CAPITALIST ECONOMIES, CASH MANAGEMENT, CENTRAL BANK, CENTRAL BANK SUPPORT, CENTRAL BANKS, COMMODITIES, COMMUNICATION TECHNOLOGIES, COMPETITIVE MARKET, CONFIDENCE OF INVESTORS, CONTINGENT LIABILITIES, CREDIBILITY, CREDIT DERIVATIVES, CREDIT LINES, CREDITORS, CRISIS COUNTRIES, CURRENCY, CURRENCY BOARD, DEBT, DEBT BURDEN, DEBT DEFAULT, DEBT DEFAULTS, DEBT LEVEL, DEBT LEVELS, DEBT MANAGEMENT, DEBT OBLIGATIONS, DEBT REDUCTION, DEBT SERVICE, DEBT SERVICING, DEBT SERVICING COSTS, DEBT-SERVICE, DEFICITS, DEMOCRACY, DEMOGRAPHIC, DEPOSIT, DEPOSIT INSURANCE, DEVALUATION, DEVELOPING COUNTRIES, ECONOMIC DEVELOPMENT, ECONOMIC DOWNTURN, ECONOMIC EFFICIENCY, ECONOMIC POLICIES, EMERGING MARKETS, EQUIPMENT, EQUITIES, EQUITY MARKETS, EQUITY PRICES, EXCHANGE RATE, EXPENDITURE, EXPENDITURES, EXPORTERS, FERTILITY RATES, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL HEALTH, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL SUSTAINABILITY, FINANCIAL SYSTEM, FINANCING REQUIREMENT, FISCAL BURDEN, FISCAL CONSOLIDATION, FISCAL DEFICIT, FISCAL DEFICITS, FISCAL DISCIPLINE, FISCAL EFFORT, FISCAL POLICIES, FISCAL POLICY, FOOD PRICES, FOREIGN CURRENCY, FOREIGN CURRENCY DEBTS, FOREIGN DIRECT INVESTMENT, GENERATIONAL ACCOUNTING, GENERATIONAL ACCOUNTS, GLOBAL ECONOMY, GLOBAL FINANCIAL SYSTEM, GLOBAL OUTPUT, GOVERNMENT BONDS, GOVERNMENT BUDGET, GOVERNMENT BUDGET DEFICIT, GOVERNMENT DEBT, GOVERNMENT EXPENDITURE, GOVERNMENT EXPENDITURES, GOVERNMENT POLICY, GOVERNMENT REVENUE, GOVERNMENT REVENUES, GOVERNMENT SECURITIES, GROSS DEBT, HOLDINGS, HUMAN CAPITAL, INCENTIVE STRUCTURE, INCOME, INDEBTED COUNTRIES, INDEBTEDNESS, INDUSTRIAL COUNTRIES, INFLATION, INFLATIONARY EXPECTATIONS, INSTRUMENT, INSURERS, INTEREST PAYMENTS, INTEREST RATE, INTERNATIONAL BANK, INTERNATIONAL FINANCE, INTERNATIONAL MARKETS, INTERNATIONAL STANDARDS, INTERNATIONAL TRADE, INVESTOR CONFIDENCE, JOB CREATION, LABOR MARKET, LEVEL OF DEBT, LIABILITY, LIFE EXPECTANCY, LIQUID ASSETS, LIQUIDITY, LIVING STANDARDS, LONG-TERM INTEREST, LONG-TERM INTEREST RATES, LONG-TERM LIABILITIES, MACROECONOMIC POLICIES, MACROECONOMIC STABILITY, MARKET CONFIDENCE, MARKET PARTICIPANTS, MARKET VOLATILITY, MATURITIES, MATURITY, MONETARY POLICIES, MONETARY POLICY, MORTGAGE, MORTGAGE MARKETS, MUTUAL FUNDS, NATURAL DISASTERS, NOMINAL INTEREST RATE, OIL PRICES, OPPORTUNITY COST, OUTSTANDING PUBLIC DEBT, PENSION, PENSION FUND, PENSION FUND ASSETS, PENSION FUND INVESTMENTS, PENSION FUNDS, PENSION SYSTEM, PENSIONS, POLICY RESPONSES, POLITICAL ECONOMY, POLITICAL STABILITY, POLITICAL SYSTEMS, POPULATION AGEING, PRICE STABILITY, PRIVATE INVESTORS, PRIVATE PENSION, PRIVATE SECTOR DEVELOPMENT, PROPERTY RIGHTS, PUBLIC DEBT, PUBLIC DEBTS, PUBLIC FINANCES, PUBLIC FUNDS, PUBLIC INVESTMENT, PUBLIC PENSION, PUBLIC PENSIONS, PUBLIC POLICY, PUBLIC SECTOR BORROWING, PUBLIC SPENDING, RATE OF GROWTH, RATES OF INFLATION, REAL ESTATE, REAL INTEREST, REAL INTEREST RATES, REGULATORY BARRIERS, REGULATORY FRAMEWORK, RESERVE, RESERVES, RETIREMENT AGE, RETIREMENT AGES, RETURN, RISK FACTORS, RULE OF LAW, SAFETY NETS, SAVINGS, SECURITY RISKS, SHAREHOLDERS, SHORT-TERM INTEREST RATE, SMALL BUSINESSES, SMALL COUNTRY, SOCIAL PROTECTION, SOCIAL SAFETY NETS, SOLVENCY, STATE GUARANTEES, STOCKS, SUSTAINABLE GROWTH, TAX, TAX POLICY, TAX RATES, TAX REGIME, TAX SYSTEM, TAX SYSTEMS, TECHNOLOGICAL ADVANCES, TRADE UNIONS, TRANSPARENCY, TREASURY, URBANIZATION, VARIABLE RATES, WHOLESALE FUNDING, WORLD ECONOMY,
Online Access:	http://documents.worldbank.org/curated/en/2014/03/19254930/fiscal-challenges-after-global-financial-crisis-survey-key-issues https://hdl.handle.net/10986/17286
Tags:	Add Tag No Tags, Be the first to tag this record!