An analysis of fiscal adjustment patterns in Central and Eastern Europe and Central Asia is conducted here, including recent years. The main question addressed in the article is whether sustainable fiscal adjustment has been achieved primarily through downsizing potentially less productive public expenditure, or possibly at the expense of potentially growth-promoting expenditure. In addition, the article also addresses a related issue of whether fiscal policy has been managed in a sufficiently counter-cyclical way in the countries in question.

Keywords: sustainability of fiscal adjustment, transition economies, public finances and business cycle.

  Andrzej Rzońca, Aristomene Varoudakis, The Quality of Fiscal Adjustments in Transition Economies - plik pdf; (354 KB)