Fiscal Deficits and Current Account Deficits.

The effectiveness of recent fiscal stimulus packages significantly depends on the assumption of non-Ricardian savings behavior. We show that, under the same assumption, fiscal deficits can have worrisome implications if they turn out to be permanent. First, if they occur in large countries they sign...

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Detalles Bibliográficos
Clasificación:Libro Electrónico
Autor principal: Kumhof, Michael
Otros Autores: Laxton, Douglas
Formato: Electrónico eBook
Idioma:Inglés
Publicado: Washington : International Monetary Fund, 2009.
Colección:IMF Working Papers.
Temas:
Finance, Public > Econometric models.
Debts, Public.
Accounts current.
Fiscal policy.
Finances publiques > Modèles économétriques.
Dettes publiques.
Comptes courants.
Politique fiscale.
Accounts current
Debts, Public
Finance, Public > Econometric models
Fiscal policy
Acceso en línea:Texto completo
Descripción
Sumario:The effectiveness of recent fiscal stimulus packages significantly depends on the assumption of non-Ricardian savings behavior. We show that, under the same assumption, fiscal deficits can have worrisome implications if they turn out to be permanent. First, if they occur in large countries they significantly raise the world real interest rate. Second, they cause a short run current account deterioration equal to around 50 percent of the fiscal deficit deterioration. Third, the longer run current account deterioration equals almost 75 percent for a large economy such as the United States, and a.
Descripción Física:1 online resource (62 pages)
ISBN:9781452706672
1452706670

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