01801cas a2200277 a 4500 AALejournalIMF006598 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455201464 1018-5941 BD-DhAAL BD-DhAAL Laxton, Douglas. Budget Consolidation : Short-Term Pain and Long-Term Gain / Douglas Laxton, Susanna Mursula, Kevin Clinton, Michael Kumhof. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper evaluates the costs and benefits of fiscal consolidation using simulations based on the IMFs global DSGE model GIMF. Over the longer run, well-targeted permanent reductions in budget deficits lead to a considerable increase in both the growth rate and the level of output. The gains may be enhanced by shifting some of the tax burden from incomes to consumption. In the short run, credibility plays a crucial role in determining the size of initial output loses. Global current account imbalances would be significantly reduced if budget consolidation was larger in countries with current account deficits. Mode of access: Internet Clinton, Kevin. Kumhof, Michael. Mursula, Susanna. IMF Working Papers; Working Paper ; No. 2010/163 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/163/001.2010.issue-163-en.xml IMF e-Library