The chart shows the median from an event-study analysis of 30 advanced economies using data for 48 fiscal consolidation episodes during
1945–2012, as detailed in Escolano and others (2014). The episodes are selected based on adjustment episodes where countries needed and
wanted to adjust in order to stabilize their debt-to-GDP ratio. The shaded area represents the 25th to the 75th percentiles of the debt-to-GDP
ratio