Coping with High Debt and Sluggish Growth
The World Economic Outlook (WEO) presents the IMF staff’s analysis and projections of economic developments at the global level, in major country groups (classified by region, stage of development, etc.), and in many individual countries. It focuses on major economic policy issues as well as on the analysis of economic developments and prospects. It is usually prepared twice a year, as documentation for meetings of the International Monetary and Financial Committee, and forms the main instrument of the IMF’s global surveillance activities.
Chapter 3: The Good, the Bad, and the Ugly: 100 Years of Dealing with Public Debt Overhangs
Throughout the past century, numerous advanced economies have faced public debt burdens as high, or higher, than those prevailing today. They responded with a wide variety of policy approaches. This chapter analyzes these experiences and concludes that the first priority today must be to complement fiscal consolidation with measures to support growth, especially, very accommodative monetary policy and structural reforms.
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3.1 Differentiating Episodes by the Change in the Debt-to-GDP Ratio
Chart Data 3.1 Public Debt in Advanced Economies
Chart Data 3.2 Debt-to-GDP Dynamics after Public Debt Reaches 100 Percent of GDP
Chart Data 3.3 Debt-to-GDP Dynamics
Chart Data 3.4 High Debt, Growth, and Inflation
Chart Data 3.5 Debt and Growth Performance
Chart Data 3.6 Debt-to-GDP Dynamics after Crossing the 100 Percent Threshold
Chart Data 3.7 United Kingdom: Deflation in the Aftermath of World War I
Chart Data 3.8 United States: Debt Dynamics after World War II
Chart Data 3.9 Japan: Lost Decade
Chart Data 3.10 Italy: Fading Zeal
Chart Data 3.11 Belgium: A Marathon Not a Sprint
Chart Data 3.12 Canada: Fiscal Consolidation after 1985
Chart Data 3.13 Decomposition of Debt Dynamics in Case Study Countries
Chart Data 3.14 Contribution to GDP from Exports
Chapter 4: Resilience in Emerging Market and Developing Economies: Will It Last?