Twin Deficits In Developing Economies

Author : Davide Furceri,Ms.Aleksandra Zdzienicka
Publisher : International Monetary Fund
Page : 41 pages
File Size : 44,8 Mb
Release : 2018-07-27
Category : Business & Economics
ISBN : 9781484364000

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Twin Deficits in Developing Economies by Davide Furceri,Ms.Aleksandra Zdzienicka Pdf

This paper provides new evidence on the existence and magnitude of the “twin deficits” in developing economies. It finds that a one percent of GDP unanticipated increase in the government budget balance improves, on average, the current account balance by 0.8 percentage point of GDP. This effect is substantially larger than that obtained using standard measures of fiscal impulse, such as the cyclically-adjusted budget balance. The results point to heterogeneity across countries and over time. The effect tends to be larger: (i) during recessions; in countries (ii) that are more open to trade; (iii) that have less flexible exchange rate regimes; and (iv) with lower initial public debt-to-GDP ratios.

Author : Robert A. Blecker
Publisher : Routledge
Page : 163 pages
File Size : 53,6 Mb
Release : 2016-09-16
Category : Business & Economics
ISBN : 9781315288314

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Beyond the Twin Deficits: A Trade Strategy for the 1990's by Robert A. Blecker Pdf

This study documents evidence of a decline trend in the international competitiveness of US industry. The analysis identifies three groups of countries that account for most of the US trade deficit in the 1980s: the surplus countries, Germany and Japan; the East Asian NICs; and the Latin American debtors. In each case the author points to underlying structural problems contributing to the deficit. They call for quite different US policy responses, including microeconomic and industrial policies, incentives to revive productivity, growth and technological innovation, import surcharges, wage increases in the NICs, currency realignments, US capital exports, and debt relief. A pragmatic policy approach, with efforts to open foreign markets, aims to achieve the greatest possible reduction in the trade deficit with the lowest possible cost from macroeconomic adjustments. The author urges the reversal of two adverse trends in his policy strategy: the decline in public sector investment and the decreasing progressivity of the tax code.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 32 pages
File Size : 49,9 Mb
Release : 2010-05-01
Category : Business & Economics
ISBN : 9781455200801

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Fiscal Policy and the Current Account by International Monetary Fund Pdf

This paper examines the relationship between fiscal policy and the current account, drawing on a larger country sample than in previous studies and using panel regressions, vector autoregressions, and an analysis of large fiscal and external adjustments. On average, a strengthening in the fiscal balance by 1 percentage point of GDP is associated with a current account improvement of 0.2–0.3 percentage point of GDP. This association is as strong in emerging and low-income countries as it is in advanced economies; and significantly higher when output is above potential.

Author : Raghbendra Jha
Publisher : Unknown
Page : 0 pages
File Size : 50,9 Mb
Release : 2011
Category : Electronic
ISBN : OCLC:1375677247

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Macroeconomics of Fiscal Policy in Developing Countries by Raghbendra Jha Pdf

This paper considers some aspects of the effects of fiscal policy on macroeconomic adjustment in developing countries. First, the paper reviews the notion of the fiscal deficit in the particular context of developing countries. It then spells out the conditions under which the internal and external debts are sustainable and points out the role of the "twin deficits". The paper then presents some evidence on the sustainability of the internal and external deficits in the context of some developing countries. Finally the paper develops the theme of endogeneity of money supply to fiscal policy and international capital flows and points out the difficulties faced by stabilization policy under these conditions.

Author : M. Ayhan Kose,Peter Nagle,Franziska Ohnsorge,Naotaka Sugawara
Publisher : World Bank Publications
Page : 403 pages
File Size : 40,8 Mb
Release : 2021-03-03
Category : Business & Economics
ISBN : 9781464815454

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Global Waves of Debt by M. Ayhan Kose,Peter Nagle,Franziska Ohnsorge,Naotaka Sugawara Pdf

The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.

Author : Mr.Daniel Leigh,Mr.Andrea Pescatori,Mr.Jaime Guajardo
Publisher : International Monetary Fund
Page : 41 pages
File Size : 40,9 Mb
Release : 2011-07-01
Category : Business & Economics
ISBN : 9781455294695

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Expansionary Austerity New International Evidence by Mr.Daniel Leigh,Mr.Andrea Pescatori,Mr.Jaime Guajardo Pdf

This paper investigates the short-term effects of fiscal consolidation on economic activity in OECD economies. We examine the historical record, including Budget Speeches and IMFdocuments, to identify changes in fiscal policy motivated by a desire to reduce the budget deficit and not by responding to prospective economic conditions. Using this new dataset, our estimates suggest fiscal consolidation has contractionary effects on private domestic demand and GDP. By contrast, estimates based on conventional measures of the fiscal policy stance used in the literature support the expansionary fiscal contractions hypothesis but appear to be biased toward overstating expansionary effects.

Author : Hasan Dincer,Ümit Hacioglu,Serhat Yüksel
Publisher : Springer
Page : 483 pages
File Size : 42,5 Mb
Release : 2018-06-12
Category : Business & Economics
ISBN : 9783319784946

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Global Approaches in Financial Economics, Banking, and Finance by Hasan Dincer,Ümit Hacioglu,Serhat Yüksel Pdf

This volume discusses the impact of Financial Economics, Growth Dynamics, and the Finance & Banking sector in the economies of countries. The contributors analyse and discuss the effects of the recent financial crises on the economic growth and performance in various countries. The volume covers aspects like foreign borrowing, impact on productivity and debt crises that are strongly affected by the financial volatility of recent years and includes examples from Europe and Asia. In addition, the authors give particular attention to the private sector of Finance and Banking, which is deeply interwoven with the financial performance of a country’s economy. Examples such as bank profitability and troubled loans are covered and the volume also discusses the economic impact of banks such as the Ottoman Bank in a national economy. The book also explores the importance of financial stability, intellectual capital and bank performance for a stable economic environment.

Author : Ali Zafar
Publisher : Springer Nature
Page : 250 pages
File Size : 47,5 Mb
Release : 2021-05-11
Category : Business & Economics
ISBN : 9783030710064

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The CFA Franc Zone by Ali Zafar Pdf

This book provides an empirical analysis of economic and political structures impacting the CFA franc zone. Concise and practical chapters explore the history of the CFA franc zone, challenges to development, geopolitical issues, the importance of flexible exchanges rates, growth trends, and the impact of the Covid crisis. Policy reform is examined to detail economic approaches that could reduce poverty and increase the quality of life within the area. This book aims to present a macroeconomic and exchange rate framework to promote development and post-Covid recovery within the CFA franc zone. It will be of interest to students, researchers, and policymakers involved in African economics, the political economy, and development economics.

Author : Taranza T. Ganziro,Robert G. Vambery
Publisher : Emerald Group Publishing
Page : 280 pages
File Size : 42,9 Mb
Release : 2016-01-06
Category : Business & Economics
ISBN : 9781785606403

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The Exorbitant Burden by Taranza T. Ganziro,Robert G. Vambery Pdf

This economic and political science work is a rigorous analysis that demonstrates that although it is a privilege and a benefit for the US to have its currency, the dollar, as the leading world reserve currency, the privilege also proves to be a very significant economic and security burden imposed on the nation.

Author : Ethan Ilzetzki,Mr.Enrique G. Mendoza,Mr.Carlos A. Végh Gramont
Publisher : International Monetary Fund
Page : 68 pages
File Size : 50,7 Mb
Release : 2011-03-01
Category : Business & Economics
ISBN : 9781455218028

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How Big (Small?) are Fiscal Multipliers? by Ethan Ilzetzki,Mr.Enrique G. Mendoza,Mr.Carlos A. Végh Gramont Pdf

We contribute to the intense debate on the real effects of fiscal stimuli by showing that the impact of government expenditure shocks depends crucially on key country characteristics, such as the level of development, exchange rate regime, openness to trade, and public indebtedness. Based on a novel quarterly dataset of government expenditure in 44 countries, we find that (i) the output effect of an increase in government consumption is larger in industrial than in developing countries, (ii) the fisscal multiplier is relatively large in economies operating under predetermined exchange rate but zero in economies operating under flexible exchange rates; (iii) fiscal multipliers in open economies are lower than in closed economies and (iv) fiscal multipliers in high-debt countries are also zero.

Author : Aleksandr V Gevorkyan
Publisher : Routledge
Page : 284 pages
File Size : 51,9 Mb
Release : 2013-07-03
Category : Business & Economics
ISBN : 9781136833502

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Innovative Fiscal Policy and Economic Development in Transition Economies by Aleksandr V Gevorkyan Pdf

This book explores the problems of fiscal policy as an instrument of economic and social development in the modern environment, primarily focusing on the transition economies of Eastern Europe, Caucasus, and Central Asia. Evaluating the transformational experience in these countries, this work meets a need for a critical analysis in the aftermath of the 1990s market liberalization reforms, of current trends and to outline the roadmap for future development.

Author : Wan Latifah
Publisher : Xlibris Corporation
Page : 317 pages
File Size : 50,6 Mb
Release : 2014-09-10
Category : Business & Economics
ISBN : 9781499018318

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Macromodeling Debt and Twin Deficits by Wan Latifah Pdf

Debt is an important form of financing economic development, especially external debt is in the form of foreign exchange inflows. Exports may not bring in the necessary amount of foreign exchange needed for more imports, or foreign direct investment may not be sufficient for rapid economic development. Debt may bring in benefits/profits or may become a problem of liquidity or solvency. Debt is profitable when its usage brings in discounted streams of rates of return greater than its discounted streams of costs. Illiquidity is a short-run inadequacy of foreign exchange whereas solvency is a long-run problem in the same respect. Debt crisis - a long run solvency problem - refers to a situation where a country or a region undergo rescheduling; i.e. postponement of interest and principal repayments as a result of inability to repay debt. Rescheduling occurs often through the process of negotiations between debtors and creditors. A country can also declare a moratorium which is more severe because it means repayments of interest or both interest and principal are stopped temporarily until creditors agree to negotiate. The 1980s marked a decade where there were developing country-wide debt problem. The nature of debt problem broadly differ among regions. The Latin American countries went into debt crisis due to excessive borrowings in the international credit markets including the Euro-currency market. The debt crisis in the African region predates that of the Latin Americans due to scarcity of foreign exchange earnings via exports. The ASEAN region has lesser debt problems of illiquidity in nature, thus perceived as creditworthy by over-viewers, facilitating more capital inflows in either the form of foreign investment or foreign debt.

Author : Mr.Olivier J. Blanchard,Mr.Daniel Leigh
Publisher : International Monetary Fund
Page : 43 pages
File Size : 41,5 Mb
Release : 2013-01-03
Category : Business & Economics
ISBN : 9781475532425

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Growth Forecast Errors and Fiscal Multipliers by Mr.Olivier J. Blanchard,Mr.Daniel Leigh Pdf

This paper investigates the relation between growth forecast errors and planned fiscal consolidation during the crisis. We find that, in advanced economies, stronger planned fiscal consolidation has been associated with lower growth than expected, with the relation being particularly strong, both statistically and economically, early in the crisis. A natural interpretation is that fiscal multipliers were substantially higher than implicitly assumed by forecasters. The weaker relation in more recent years may reflect in part learning by forecasters and in part smaller multipliers than in the early years of the crisis.

Author : Anonim
Publisher : Unknown
Page : 842 pages
File Size : 41,7 Mb
Release : 2011-07
Category : Economics
ISBN : UCBK:C098115726

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Indian Journal of Economics by Anonim Pdf

Author : Jacob A. Frenkel
Publisher : University of Chicago Press
Page : 422 pages
File Size : 49,9 Mb
Release : 2007-12-01
Category : Business & Economics
ISBN : 9780226262543

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International Aspects of Fiscal Policies by Jacob A. Frenkel Pdf

This volume brings together nine papers from a conference on international macroeconomics sponsored by the NBER in 1985. International economists as well as graduate students in the fields of global monetary economics, finance, and macroeconomics will find this an outstanding contribution to current research. It includes two commentaries for each paper, written by experts in the field, and Frenkel's detailed introduction, which serves as a reader's guide to the arguments made, the models employed, and the issues raised by each contributor. The studies analyze national fiscal policies within the context of the international economic order. Malcolm D. Knight and Paul R. Masson use an empirical model to show that fiscal changes in recent years in the United States, West Germany, and Japan have caused major disturbances in net savings and investment flows. Linda S. Kole uses a two-country simulation model to examine the effects of a large nation's expansion on exchange rates, interest rates, and the balance of payments. In other studies, Warwick J. McKibbin and Jeffrey D. Sachs discuss the influences of different currency regimes on the international transmission of inflation; Kent P. Kimbrough analyzes the interaction between optimal tax policies and international trade; Sweder van Wijnbergen investigates the interrelation of fiscal policies, trade intervention, and world interest rates; and Willem H. Buiter uses an analytical model to look at fiscal interdependence and optimal policy design. David Backus, Michael Devereux, and Douglas Purvis develop a theoretical model to investigate effects of different fiscal policies in an open economy. Alan C. Stockman looks at the influence of policy anticipation in the private sector, while Lawrence H. Summers shows the effects of differential tax policy on international competitiveness.