01742cas a2200253 a 4500 AALejournalIMF013426 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475553864 1018-5941 BD-DhAAL BD-DhAAL Eyraud, Luc. The Challenge of Debt Reduction during Fiscal Consolidation / Luc Eyraud, Anke Weber. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (36 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 Studies suggest that fiscal multipliers are currently high in many advanced economies. One important implication is that fiscal tightening could raise the debt ratio in the short term, as fiscal gains are partly wiped out by the decline in output. Although this effect is not long-lasting and debt eventually declines, it could be an issue if financial markets focus on the short-term behavior of the debt ratio, or if country authorities engage in repeated rounds of tightening in an effort to get the debt ratio to converge to the official target. We discuss whether these problems could be addressed by setting and monitoring debt targets in cyclically-adjusted terms. Mode of access: Internet Weber, Anke. IMF Working Papers; Working Paper ; No. 2013/067 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/067/001.2013.issue-067-en.xml IMF e-Library