Contingent Liabilities – A Threat to Fiscal Stability

PREM notes summarize good practices and key findings on various issues related to Poverty Reduction and Economic Management. Contingent government liabilities are associated with major hidden fiscal risks that might have severe consequences for fiscal policies. The author offers an agenda for the future and transcribes what policymakers should do to achieve fiscal stability, namely identify, classify, and understand the full range of fiscal risks.


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