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Fiscal Management in Adjustment Lending
Jayati Datta-Mitra
Price: $ 22

Fiscal balance is central to the success of economic adjustment. This study analyzes the World Bank's experience with fiscal management in 250 adjustment operations in 86 countries. It examines the fiscal record in a sample of 26 countries (134 operations) grouped by region, portfolio characteristics, and economic traits. The study confirms that fiscal deficit reduction is associated with improved external balances and economic growth and that combating reversals requires sustained, long-term effort and continual vigilance. It also suggests that fiscal mismanagement--not exogenous shocks--was the principal cause of persistent budget deficits.

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