This paper examines the impact of fiscal adjustments on their likelihood of success and macroeconomic consequences in OECD countries. The authors identify two types of fiscal adjustments: Type 1, which primarily relies on spending cuts on transfers and government wages, and Type 2, which primarily relies on tax increases and cuts in public investment. They find that Type 1 adjustments are more likely to be successful and have expansionary effects, while Type 2 adjustments tend to be unsuccessful and contractionary. The paper discusses various explanations for these findings, including the credibility and wealth effects of fiscal adjustments, and analyzes three case studies: Denmark, Ireland, and Italy. The authors also review the literature on the contractionary or expansionary effects of fiscal adjustments and propose a measure of fiscal impulse to isolate discretionary changes in the fiscal position. The empirical analysis covers a sample of 20 OECD countries from 1960 to 1994, focusing on periods of tight fiscal policy. The results suggest that successful adjustments are characterized by broader-based spending cuts, particularly in politically sensitive areas like transfers and social security, and tax increases on business and indirect taxes. The macroeconomic consequences of successful adjustments include higher GDP growth, lower unemployment, and increased private investment, while unsuccessful adjustments lead to lower growth, higher unemployment, and reduced private investment. The paper concludes by discussing the robustness of the findings and suggesting further research directions.This paper examines the impact of fiscal adjustments on their likelihood of success and macroeconomic consequences in OECD countries. The authors identify two types of fiscal adjustments: Type 1, which primarily relies on spending cuts on transfers and government wages, and Type 2, which primarily relies on tax increases and cuts in public investment. They find that Type 1 adjustments are more likely to be successful and have expansionary effects, while Type 2 adjustments tend to be unsuccessful and contractionary. The paper discusses various explanations for these findings, including the credibility and wealth effects of fiscal adjustments, and analyzes three case studies: Denmark, Ireland, and Italy. The authors also review the literature on the contractionary or expansionary effects of fiscal adjustments and propose a measure of fiscal impulse to isolate discretionary changes in the fiscal position. The empirical analysis covers a sample of 20 OECD countries from 1960 to 1994, focusing on periods of tight fiscal policy. The results suggest that successful adjustments are characterized by broader-based spending cuts, particularly in politically sensitive areas like transfers and social security, and tax increases on business and indirect taxes. The macroeconomic consequences of successful adjustments include higher GDP growth, lower unemployment, and increased private investment, while unsuccessful adjustments lead to lower growth, higher unemployment, and reduced private investment. The paper concludes by discussing the robustness of the findings and suggesting further research directions.