Fiscal Policy and the Current Account
Download or Read eBook Fiscal Policy and the Current Account PDF written by International Monetary Fund and published by International Monetary Fund. This book was released on 2010-05-01 with total page 32 pages. Available in PDF, EPUB and Kindle.
| Author | : International Monetary Fund |
| Publisher | : International Monetary Fund |
| Total Pages | : 32 |
| Release | : 2010-05-01 |
| ISBN-10 | : 9781455200801 |
| ISBN-13 | : 1455200808 |
| Rating | : 4/5 (01 Downloads) |
Book Synopsis Fiscal Policy and the Current Account by : International Monetary Fund
Book excerpt: 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.
