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

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  • Mr. Driton Qehaja

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.

Suggested Citation

  • Mr. Driton Qehaja, 2012. "Fiscal Policy Response to External Crises the Case of Moldova 1998-2010," IMF Working Papers 2012/082, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2012/082
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=25789
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    References listed on IDEAS

    as
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    2. International Monetary Fund, 2011. "Republic of Moldova: Second Reviews Under the Extended Arrangement and Under the Three-Year Arrangement Under the Extended Credit Facility, and Request for Waiver of Applicability of Performance Crite," IMF Staff Country Reports 2011/089, International Monetary Fund.
    3. International Monetary Fund, 2000. "Barbados: Staff Report for the 2000 Article IV Consultation," IMF Staff Country Reports 2000/158, International Monetary Fund.
    4. International Monetary Fund, 1999. "Moldova: Recent Economic Developments," IMF Staff Country Reports 1999/110, International Monetary Fund.
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    6. International Monetary Fund, 2000. "Portugal: Staff Report for the 2000 Article IV Consultation," IMF Staff Country Reports 2000/152, International Monetary Fund.
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    8. International Monetary Fund, 2000. "Luxembourg: Staff Report for the 2000 Article IV Consultation," IMF Staff Country Reports 2000/065, International Monetary Fund.
    9. International Monetary Fund, 2010. "Guinea-Bissau: 2010 Article IV Consultation and Request for a Three-Year Arrangement Under the Extended Credit Facility and for Additional Interim Assistance Under the Enhanced Heavily Indebted Poor C," IMF Staff Country Reports 2010/117, International Monetary Fund.
    10. International Monetary Fund, 2010. "Malawi: Staff Report for 2009 Article IV Consultation and Request for a Three-Year Arrangement Under the Extended Credit Facility," IMF Staff Country Reports 2010/087, International Monetary Fund.
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    12. Ms. Elina Ribakova & Mr. Balázs Horváth & Mr. Dimitri G Demekas & Mr. Yi Wu, 2005. "Foreign Direct Investment in Southeastern Europe: How (and How Much) Can Policies Help?," IMF Working Papers 2005/110, International Monetary Fund.
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    14. International Monetary Fund, 2010. "Republic of Moldova: Request for a Three-Year Arrangement Under the Extended Credit Facility and Request for an Extended Arrangement," IMF Staff Country Reports 2010/032, International Monetary Fund.
    15. Mr. Henri Lorie, 2003. "Priorities for Further Fiscal Reforms in the Commonwealth of Independent States," IMF Working Papers 2003/209, International Monetary Fund.
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