Cover Image
Read Now

Fiscal Policy and the Current Account

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 bal...

Full description

Bibliographic Details
Corporate Author: International Monetary Fund
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2010
Series:IMF Working Papers
Subjects:
Fiscal Stance
Wealth
Economics
Short-term Capital Movements
Current Account
Saving
Government Consumption
Current Account Adjustment
Fiscal Policy
Balance Of Payments
Exports And Imports
International Economics
Current Account Balance
Consumption
Macroeconomics
Macroeconomics: Consumption
Public Finance
United States
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary: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
Physical Description:30 pages
ISBN:9781455200801

Similar Items