Recently, monetary authorities have increasingly focused on implementing policies to ensure price stability and strengthen central bank independence. Simultaneously, in the fiscal area, market development has allowed public debt managers to focus more on cost minimization. This “divorce” of monetary and debt management functions in no way lessens the need for effective coordination of monetary and fiscal policy if overall economic performance is to be optimized and maintained in the long term. This paper analyzes these issues based on a review of the relevant literature and of country experiences from an institutional and operational perspective.

This paper explores how fiscal policy can affect medium- to long-term growth. It identifies the main channels through which fiscal policy can influence growth and distills practical lessons for policymakers. The particular mix of policy measures, however, will depend on country-specific conditions, capacities, and preferences. The paper draws on the Fund’s extensive technical assistance on fiscal reforms as well as several analytical studies, including a novel approach for country studies, a statistical analysis of growth accelerations following fiscal reforms, and simulations of an endogenous growth model.

"A readable, balanced, and provocative view of the prospects for fruitful international economic cooperation. The papers are realistic: each discusses the difficulties involved in reaching cooperative solutions or procedures as well as the benefits of doing so. The discussion among the conference participants is lively, interesting, and insightful."--William H. Branson, Princeton University

"A concise, comprehensive guide to America's critical policy choices at home and overseas . . . without a partisan agenda, but with a passion for solutions designed to restore our country's strength and enable us to lead." -- Madeleine K. Albright A rising China, climate change, terrorism, a nuclear Iran, a turbulent Middle East, and a reckless North Korea all present serious challenges to America's national security. But it depends even more on the United States addressing its burgeoning deficit and debt, crumbling infrastructure, second class schools, and outdated immigration system. While there is currently no great rival power threatening America directly, how long this strategic respite lasts, according to Council on Foreign Relations President Richard N. Haass, will depend largely on whether the United States puts its own house in order. Haass lays out a compelling vision for restoring America's power, influence, and ability to lead the world and advocates for a new foreign policy of Restoration that would require the US to limit its involvement in both wars of choice, and humanitarian interventions. Offering essential insight into our world of continual unrest, this new edition addresses the major foreign and domestic debates since hardcover publication, including US intervention in Syria, the balance between individual privacy and collective security, and the continuing impact of the sequester.

Contents: (1) National Security (NS) and the Congressional Interest; 21st Century Challenges to NS; (2) The Role of the Economy in U.S. NS; Macroecon. and Microecon. Issues in NS; (3) Economic Growth and Broad Conceptions of NS: Human Capital; Research, Innovation, Energy, and Space; (4) Globalization, Trade, Finance, and the G-20; Instability in the Global Economy; Savings and Exports; Boosting Domestic Demand Abroad; Open Foreign Markets to U.S. Products and Services; Build Cooperation with International Partners; Deterring Threats to the International Financial System; (5) Democracy, Human Rights, and Development Aid; Sustainable Development. Charts and tables. This is a print on demand publication.