Fiscal consolidation, with one or two notable exceptions, is being pursued by many of the countries that require it. However, there is a risk that market forces (or legislation, as in the case of the United States) may be pushing it too quickly in the short run.
The International Monetary Fund and other policy institutions are now recommending that consolidation be pursued in a resolute but gradual manner, where possible. 7 In other words, don’t overdo it in the short run, since the fiscal multipliers are believed to be much larger than previously estimated.