The Energy Shock Is Testing Government Budgets

The energy shock is testing government budgets

New policy tracker shows many governments pursuing costly responses to fuel and food price hikes, leaving less room to address future challenges. By Era Dabla-Norris, Christian Mumssen, Rodrigo Valdés, Daria Zakharova As governments move quickly to shield people and businesses from the energy shock caused by the war in the Middle East, early evidence suggests many countries are resorting to untargeted and potentially expensive policies amid tigh…

IMF | The Energy Shock Is Testing Government Budgets | European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources

Blog | New policy tracker shows many governments pursuing costly responses to fuel and food price hikes, leaving less room to address future challenges. As governments move quickly to shield people and businesses from the energy shock caused by the war in the Middle East, early evidence suggests many countries are resorting to untargeted and potentially expensive policies amid tight budgets. If the recent peace talks lead to a quick normalizatio…