Fiscal Consolidation During Times of High Unemployment : The Role of Productivity Gains and Wage Restraint /

This paper studies the Swedish fiscal consolidation episode of the 1990s through the lens of a small open economy model with distortionary taxation and unemployment. We argue that the simultaneous reduction in the fiscal deficit and unemployment rate in this episode stems from two factors: (i) high...

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Bibliographic Details
Main Author: Lama, Ruy
Other Authors: Medina Guzman, Juan Pablo
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2015.
Series:IMF Working Papers; Working Paper ; No. 2015/262
Online Access:Full text available on IMF