IMF: Divergent recoveries stem from divergent policies Pt. II
With Bhumika Muchhala
A progressive fiscal framework recognizes that human development is the exact and ultimate return that public investment strategies must be rooted in. If the SDGs provide the basis for developing such a fiscal framework, existing fiscal rules focused on fiduciary solvency and flawed debt sustainability assessments are inadequate.
Fiscal progressivism entails allowing for higher budget deficit paths and/or higher levels of inflation without jeopardizing macroeconomic stability.