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Angana Banerji, Mr. Valerio Crispolti, Ms. Era Dabla-Norris, Mr. Romain A Duval, Mr. Christian H Ebeke, Davide Furceri, Mr. Takuji Komatsuzaki, and Mr. Tigran Poghosyan
Product and labor market reforms are needed to lift persistently sluggish growth in advanced economies. But reforms have progressed slowly because of concerns about their distributive and short-term economic effects. Our analysis, based on new empirical and numerical analysis and country case-studies shows that most labor and product market reforms can improve public debt dynamics over the medium-term. This because reforms raise output by boosting employment and/or labor productivity. But the effect of some labor market reforms on budgetary outcomes and fiscal sustainability depends critically on business cycle conditions. Our evidence also suggests that some temporary and well-designed up-front fiscal stimulus can help enhance the economic impact of reforms. In the past, countries have used fiscal incentives in the past to facilitate reforms by alleviating transition and social costs. But strong ownership of reforms was crucial for their successful implementation.
Angana Banerji, Mr. Valerio Crispolti, Ms. Era Dabla-Norris, Mr. Romain A Duval, Mr. Christian H Ebeke, Davide Furceri, Mr. Takuji Komatsuzaki, and Mr. Tigran Poghosyan

associated with a reform and fiscal expansion is: ( 9 ) τ Δ Y= τ ε M Y 0 R. Combining (7) and (9) it is possible to determine the following self-financing condition for PMR: ( 10 ) ( r-g ) Δ D  -       τ ε M Y 0 R = ( r-g ) [ ( 1 − μ s τ ) Δ G- τ ε s Y 0 R ] − τ ε M Y 0 R

International Monetary Fund
This paper reviews economic developments in Ukraine during 1991–95. In October 1994, Ukraine finally embarked upon a comprehensive program of economic reform and stabilization. Although the efforts made in late 1994 were far reaching, the short-term results were not encouraging: inflation remained stubbornly high, the exchange rate weak, activity declined, and the rate of accumulation of external arrears dangerously rapid. By the first half of 1995, the performance .of the economy was more encouraging. Inflation slowed to monthly rates of about 5 percent. Exports to western markets also expanded strongly.
International Monetary Fund

guaranteed markets for their output. The product has to find a willing buyer, and even that is not enough to assure cash flow due to the break-down in payments discipline. Consumer demand and willingness and ability to pay thus place a constraint on enterprises’ pricing and production decisions which had not existed only a year or two ago. A “semi-hard” budget constraint has been imposed under the auspices of the economic program supported by the IMF in 1995. Enterprises are supposed to meet a self-financing condition--income from the sale of their output and access to