Gale, William, Berlin, Ian and Thorpe, Sam (2025) Fiscal consolidation: lessons for the United States. National Tax Journal. ISSN 0028-0283
Full text not available from this repository.Abstract
How should the United States respond to its unsustainable fiscal outlook? How and when a country should fiscally consolidate depends on its existing circumstances, policies, and institutions. We review the experiences of other countries that attempted consolidations and highlight lessons applicable to the United States. We find that (1) the United States does not face a short-term crisis, so it can employ gradual adjustments, which may minimize short-term harm, (2) consolidation should occur in a strong economy with monetary accommodation, and (3) tax increases (spending cuts) could plausibly play a larger (smaller) role in US consolidations than in European adjustments.
| Item Type: | Article |
|---|---|
| Additional Information: | © 2025 National Tax Association |
| Divisions: | LSE |
| Subjects: | H Social Sciences > HJ Public Finance H Social Sciences > HG Finance |
| JEL classification: | E - Macroeconomics and Monetary Economics > E0 - General > E00 - General H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H30 - General |
| Date Deposited: | 11 Nov 2025 10:54 |
| Last Modified: | 14 Nov 2025 09:45 |
| URI: | http://eprints.lse.ac.uk/id/eprint/130097 |
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