IMF: tax hikes increase success of austerity measures
An IMF paper published on 1 October says revenue-raising measures increase the likelihood of a successful debt reduction program.
Emanuele Baldacci, Sanjeev Gupta and Carlos Mulas-Granados, the paper's authors, analyse the experience of 99 advanced and developing economies from 1980 to 2008 in restoring fiscal sustainability, after debt accumulation caused by banking crises.
The paper finds that when monetary conditions are allowed to remain accommodative and risk premia contained, debt
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