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In the short run, the risks are higher for eurozone countries, which lack the option of devaluing their currencies to ease the necessary fiscal adjustment.
The dynamics of the macroeconomic and inequality variables depend strongly on the instruments used during the fiscal adjustment.
The fiscal adjustment, conducted by Finance Minister Joaquim Levy, has the bitter taste of tax increases.
The Fiscal Monitor revises the calculation of the fiscal adjustment needed to lower public debt ratios to more manageable levels over the longer run.
Advanced economies are facing the difficult challenge of implementing fiscal adjustment strategies without undermining a still fragile economic recovery.
He was particularly upset that Moody's gave a negative outlook on fears that Athen's fiscal adjustment programme was overly ambitious.
"Even in the IMF, logical people agree there is no way we can have any more fiscal adjustment when the whole thing has reached its limits," he said.
That's a big fiscal adjustment, to be sure.
Some structural reform has been implemented and a lot of fiscal adjustment has occurred.
But here the record has been far less impressive than on fiscal adjustment.
That is because interest increases the size of the future fiscal adjustment.
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