Arbeitspapier

Sovereign external borrowing and multilateral lending: Dynamics and crises

Fiscal policy is procyclical in developing countries. An ample literature has explained this fact and explored its consequences for aggregate cyclical fluctuations. Multilateral Development Banks (MDBs) are an important source of finance for governments and therefore play a role in the execution of fiscal policy. In this paper, we assess whether MDB disbursements to the sovereign commove with government expenditure and with private sovereign lending, during different stances of fiscal policy and during fiscal crises. We find that multilateral lending to the sovereign is correlated with government expenditure and this correlation does not change if the government is running a surplus or a deficit. However, when the sovereign is having a fiscal crisis associated with unsustainable fiscal policy, this relationship disappears for Regional Development Banks (RDBs) and the World Bank (WB). Finally, we find evidence of synchronization between MDBs and IMF during fiscal crises.

Sprache
Englisch

Erschienen in
Series: IDB Working Paper Series ; No. IDB-WP-936

Klassifikation
Wirtschaft
International Investment; Long-term Capital Movements
International Lending and Debt Problems
Open Economy Macroeconomics
International Business Cycles
International Agreements and Observance; International Organizations
Thema
International government debt
capital flows
multilateral development banks

Ereignis
Geistige Schöpfung
(wer)
Avellán, Leopoldo
Galindo Andrade, Arturo José
Lotti, Giulia
Ereignis
Veröffentlichung
(wer)
Inter-American Development Bank (IDB)
(wo)
Washington, DC
(wann)
2018

DOI
doi:10.18235/0001443
Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Avellán, Leopoldo
  • Galindo Andrade, Arturo José
  • Lotti, Giulia
  • Inter-American Development Bank (IDB)

Entstanden

  • 2018

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