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Fiscal Policy Response to External Crises The Case of Moldova 1998-2010

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  • Driton Qehaja
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    Abstract

    External shocks pose major challenges to fiscal policy makers through lower output and large fiscal imbalances. This paper analyzes the case of Moldova, which faced parallel crises a decade apart: the Russian crisis of 1998 and the global financial crisis of 2008-2009. The country went through large fiscal adjustments during these crises and launched important fiscal reforms. The paper reviews the crises and reform experience. In particular, it aims to explain the motivation for reforms, describe reform design and implementation, and provide an understanding of their outcomes. The paper also catalogues the form and size of international assistance for Moldova.

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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=25789
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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 12/82.

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    Length: 33
    Date of creation: 01 Mar 2012
    Date of revision:
    Handle: RePEc:imf:imfwpa:12/82

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    Related research

    Keywords: External shocks; Fiscal reforms; Global Financial Crisis 2008-2009; Government expenditures; Revenue sources;

    This paper has been announced in the following NEP Reports:

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    1. Dana Hajkova & Giuseppe Nicoletti & Laura Vartia & Kwang-Yeol Yoo, 2006. "Taxation, Business Environment and FDI Location in OECD Countries," OECD Economics Department Working Papers 502, OECD Publishing.
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