Download or read book Modeling Optimal Fiscal Consolidation Paths in a Selection of European Countries written by Mr.Daniel Kanda and published by International Monetary Fund. This book was released on 2011-07-01 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: For a number of countries - Italy, Netherlands, the United Kingdom, Germany, Ireland, and France - this paper develops an inter-temporal model that elicits the implied country-preferences over balancing the conflicting objectives of fiscal consolidation and reduction of economic slack. The model suggests that some front-loading of adjustment is desirable, although the extent would vary by country preferences. It also finds that proposed consolidations may prove to be stronger than acceptable, especially if somewhat larger than anticipated fiscal multipliers lead to a sizeable economic deceleration.