01914cas a2200265 a 4500 AALejournalIMF013999 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475516500 1018-5941 BD-DhAAL BD-DhAAL Baldacci, Emanuele. Debt Reduction, Fiscal Adjustment, and Growth in Credit-Constrained Economies / Emanuele Baldacci, Sanjeev Gupta, Carlos Mulas-Granados. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (37 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 This paper assesses the effects of fiscal consolidations associated with public debt reduction on medium-term output growth during periods of private debt deleveraging. The analysis covers 107 countries and 79 episodes of public debt reduction driven by discretionary fiscal adjustments during 1980-2012. It shows that expenditure-based, front-loaded fiscal adjustments can dampen growth when there are credit supply restrictions. Instead, fiscal adjustments that are gradual and rely on a mix of revenue and expenditure measures can support output expansion, while reducing public debt. In this context, protecting public investment is critical for medium-term growth, as is the implementation of supply-side, productivity-enhancing reforms. Mode of access: Internet Gupta, Sanjeev. Mulas-Granados, Carlos. IMF Working Papers; Working Paper ; No. 2013/238 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/238/001.2013.issue-238-en.xml IMF e-Library