Baldacci, EmmanuelGupta, SanjeevMulas Granados, Carlos2023-06-182023-06-182015-051667-672610.1016/S1514-0326(15)30004-0https://hdl.handle.net/20.500.14352/23801This paper assesses the effects of fiscal consolidations associated with public debt reduction on medium-term output growth during periods of private debt deleveraging. The analysis covers 107 countries and 79 episodes of public debt reduction driven by discretionary fiscal adjustments during the 1980-2012 period. It shows that expenditure-based, front-loaded fiscal adjustments can dampen growth when there are credit supply restrictions. Instead, fiscal adjustments that are gradual and rely on a mix of revenue and expenditure measures can support output expansion, while reducing public debt. In this context, protecting public investment is critical for medium-term growth, as is the implementation of supply-side, productivity-enhancing reforms.engjournal articlehttp://dx.doi.org/10.1016/S1514-0326(15)30004-0restricted accessH30E62Debt consolidationFiscal adjustmentsOutput growthCredit constraints: Bank deleveragingDesarrollo económico5307.03 Modelos y Teorías del desarrollo Económico5307.04 Estudios del desarrollo Económico