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Aspects of Fiscal Performance in Some Transition Economies Under Fund-Supported Programs

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  • Mr. Willem H. Buiter

Abstract

Key medium– and longer–term fiscal issues faced by transition economies are reviewed, including government solvency and the sustainability of the fiscal–financial–monetary program. The paper aims to assist the design and implementation of future Fund programs and to contribute to the debate about fiscal policy in transition economies. After presenting a framework for evaluating the sustainability of the fiscal–financial–monetary program of the state, some numerical material is presented on public debt, (quasi–) fiscal deficits and monetary financing. Eight budgetary issues of special relevance to transition economies are considered next. The lessons from this study are summarized in a number of propositions.

Suggested Citation

  • Mr. Willem H. Buiter, 1997. "Aspects of Fiscal Performance in Some Transition Economies Under Fund-Supported Programs," IMF Working Papers 1997/031, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1997/031
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    WP; central bank; state enterprise; interest rate; present discounted value; real GDP; rate of inflation; public finance; solvency constraint; borrowing program; FSU country; real value; budget identity; capital formation program; open economy; ratio ceiling; Government debt management; Real interest rates; Public sector; Monetary base; Eastern Europe;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

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