01992cas a2200241 a 4500 AALejournalIMF015793 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513508467 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. European Dept. France : Selected Issues. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (42 pages) IMF Staff Country Reports <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 Selected Issues paper analyzes France's fiscal stance using a structural stochastic model. The theoretical model features a forward-looking benevolent government that needs to decide the optimal fiscal stance given the level of public debt, the cyclical position of the economy, and expectations about future shocks. This paper shows that a fiscal consolidation can help build buffers that could help France confront the next downturn from a stronger fiscal position. The analysis highlights that, on average, fiscal policy in France exhibited a deficit bias over the past four decades, being unable to react to either rising debt levels, or cyclical conditions. A model-based analysis further confirms that fiscal policy was generally looser than warranted by cyclical and debt sustainability considerations, and this is only partly due to the fact policymakers need to take decisions based on real-time output gap measures that are subject to uncertainty. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2019/246 Full text available on IMF http://elibrary.imf.org/view/journals/002/2019/246/002.2019.issue-246-en.xml IMF e-Library