The International Monetary Fund stresses that fiscal plans must be flexible to allow economies to stabilize

The International Monetary Fund stresses that fiscal plans must be flexible to allow economies to stabilize

The International Monetary Fund stressed that fiscal plans should be flexible to allow economies to stabilize and avoid cuts in key public investments, and added that "changes in taxes or spending could be legitimate up front and could be made contingent on recovery." The International Monetary Fund, in its report on the monitoring of public finances, recommended that countries adhere to general financial goals with basic tax and spending policies for the next three to five years, with specific policies such as increasing taxes or raising the age of insurance for retirement benefits.

Paolo Mauro, deputy director of financial affairs at the International Monetary Fund, said that countries where economic activity is booming "could start thinking about gradually reducing the degree of financial support they provide to the economy."