02194cas a2200265 a 4500 AALejournalIMF007983 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455257270 2617-6742 BD-DhAAL BD-DhAAL Mauro, Paolo. The State of Public Finances : A Cross-Country Fiscal Monitor / Paolo Mauro, Mark Horton, Manmohan Kumar. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (33 pages) IMF Staff Position Notes <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 This paper presents sharp increase in government debt has complicated the management of preexisting challenges from population aging, especially in advanced economies. The increase in debt ratios projected for these economies is the largest since World War II. The increase in deficits and debt raises complicated tradeoffs. Policymakers will need to balance two competing risks: on the one hand, a too hasty withdrawal of fiscal stimulus would risk nipping a recovery in the bud; on the other hand, with a delayed withdrawal investor concerns about sustainability may increase, leading to higher interest rates on government paper, undermining the recovery and increasing risks of a snowballing of debt. Regardless of the timing of adjustment, its necessary scale will be quite large, particularly for high-debt advanced economies. Preserving investor confidence in government solvency is key to avoiding an increase in interest rates, thereby not only preventing snowballing debt dynamics, but also ensuring that the fiscal stimulus is effective. Mode of access: Internet Horton, Mark. Kumar, Manmohan. IMF Staff Position Notes; Staff Position Note ; No. 2009/021 Full text available on IMF http://elibrary.imf.org/view/journals/004/2009/021/004.2009.issue-021-en.xml IMF e-Library