IMF research quantifies distributional damage from fiscal consolidation
Research published by the International Monetary Fund (IMF) has sought to attach numbers to the distributional effects of fiscal consolidation by governments in advanced economies, finding a "significant" impact.
The working paper, The Distributional Effects of Fiscal Consolidation, by Laurence Ball, Davide Furceri, Daniel Leigh and Prakash Loungani uses data on 17 OECD countries from 1978 to 2009 to assess the impact of periods of fiscal tightening.
The authors find that such episodes raise
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