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Fiscal Challenges After the Global Financial Crisis: A Survey of Key Issues

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  • Augusto Lopez-Claros

    (Global Indicators Group, World Bank, 2121 Pennsylvania Avenue, NW MSN F4K-411, Washington, DC 20433, USA)

Abstract

The global financial crisis and the response to it have contributed to a sharp increase in public indebtedness in a large number of countries. While there have been episodes of high debt in the past, there are a number of long-term challenges today that are likely to complicate the implementation of sustainable fiscal policies in the coming years. Population ageing and climate change are factors that are likely to contribute to rising fiscal pressures and the crisis has highlighted the risks and vulnerabilities stemming from reduced fiscal space. This paper argues that heightened fiscal challenges can only be dealt successfully by adopting a long-term fiscal planning horizon. The paper analyzes a range of available policy tools that countries have used in the past to improve fiscal management.

Suggested Citation

  • Augusto Lopez-Claros, 2014. "Fiscal Challenges After the Global Financial Crisis: A Survey of Key Issues," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 1-34.
    • Handle: RePEc:wsi:jicepx:v:05:y:2014:i:02:n:s1793993314500045
    DOI: 10.1142/S1793993314500045
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial crisis; budget deficit; fiscal rules; population aging; climate change; G01; H5; H6; J1; Q5;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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