Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What sustains fiscal consolidations in emerging market countries?

April 26, 2017consolidations countries emerging fiscal market sustains

0

Posted

What sustains fiscal consolidations in emerging market countries?

1 Answer

0

Posted

Author InfoSanjeev Gupta (International Monetary Fund, USA) Emanuele Baldacci (International Monetary Fund, USA) Benedict Clements (International Monetary Fund, USA) Erwin R. Tiongson (International Monetary Fund, USA) Abstract This paper examines the factors affecting the persistence of fiscal consolidation in 25 emerging market countries during 1980-2001. It proposes a new approach for defining spells of fiscal consolidation. The results indicate that the probability of ending a fiscal adjustment is affected by the legacy of previous fiscal failures, the size of the deficit, the composition of spending and level of total revenues. There is also some evidence that the initial debt stock, exchange rate developments, inflation and the unemployment rate have an impact on the persistence of adjustments. Copyright © 2005 John Wiley & Sons, Ltd. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information abo