Macroeconomics of fiscal policy in developing countries

Arbeitspapier

This paper considers some aspects of the effects of fiscal policy on macroeconomic adjustment in developing countries. First, the paper reviews the notion of the fiscal deficit in the particular context of developing countries. It then spells out the conditions under which the internal and external debts are sustainable and points out the role of the “twin deficits”. The paper then presents some evidence on the sustainability of the internal and external deficits in the context of some developing countries. Finally the paper develops the theme of endogeneity of money supply to fiscal policy and international capital flows and points out the difficulties faced by stabilization policy under these conditions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WIDER Discussion Paper ; No. 2001/71

Classification and Topics

• Classification: Wirtschaft ; Fiscal and Monetary Policy in Development ; Taxation, Subsidies, and Revenue: General ; National Deficit; Surplus
• Subject: fiscal policy ; domestic debt ; foreign debt ; Finanzpolitik ; Wirtschaftliche Anpassung ; Entwicklungsländer

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Jha, Raghbendra
• Event: Veröffentlichung
• (who): The United Nations University World Institute for Development Economics Research (UNU-WIDER)
• (where): Helsinki
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/53056
• Last update: 10.03.2025, 11:43 AM CET