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International Monetary Fund

, are also under discussion. 85. This chapter seeks to analyze the macroeconomic effects of the planned reforms and additional reforms needed to restore fiscal sustainability . Using the two-country version of the IMF's Global Fiscal Model (GFM), calibrated to the Czech economy, it analyzes the impact of the reforms and the alternative proposals for addressing the long-run fiscal sustainability challenges. Specifically, it will address four main questions: How will the fiscal impact of the tax and social expenditure reform affect real activity? What are the