02003cas a2200265 a 4500 AALejournalIMF018375 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484350652 1018-5941 BD-DhAAL BD-DhAAL Honda, Jiro. When Do We Repair the Roof? : Insights from Responses to Fiscal Crisis Early Warning Signals / Jiro Honda, Rene Tapsoba, Ismael Issifou. Washington, D.C. : International Monetary Fund, 2018. 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 Should policymakers wait for fiscal crisis early warning signals before repairing the roof? We give an answer to this question by investigating the interlinkages between early warning signals for fiscal crisis, policy responses, and policy outcomes, using a broad panel of 119 countries. We find that fiscal adjsutment is a good remedy for countries that act proactively, reducing their likelihood of facing fiscal crisis by up to about 60 percent. For those waiting for wake-up calls from early-detection tools, however, fiscal adjustment may not fully prevent fiscal crisis occurrence, with the chance of fiscal crisis prevention not only smaller (about 30 percent) but also statistically not significant. These findings highlight the prominence of repairing the roof when the sun is shining, particularly in countries with weak institutions. Mode of access: Internet Issifou, Ismael. Tapsoba, Rene. IMF Working Papers; Working Paper ; No. 2018/077 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/077/001.2018.issue-077-en.xml IMF e-Library