Challenges of Fiscal Policy in Emerging and Developing Economies
This article presents a systematic analysis of the availability and use of fiscal space in emerging and developing economies. We report two major results. First, emerging and developing economies built fiscal space in the run-up to the Great Recession of 2008–2009, which was then used for stimulus....
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Taylor and Francis
2018
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| Online Access: | http://hdl.handle.net/10986/30148 |
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okr-10986-301482021-05-25T10:54:40Z Challenges of Fiscal Policy in Emerging and Developing Economies Huidrom, Raju Kose, M. Ayhan Ohnsorge, Franziska L. BUSINESS CYCLES FISCAL TRENDS FISCAL POLICY FISCAL SPACE EMERGING MARKET ECONOMIES DEVELOPING COUNTRIES RECESSION This article presents a systematic analysis of the availability and use of fiscal space in emerging and developing economies. We report two major results. First, emerging and developing economies built fiscal space in the run-up to the Great Recession of 2008–2009, which was then used for stimulus. Since then, fiscal space has shrunk and remains narrow as these economies have taken advantage of historically low interest rates. Second, fiscal policy in emerging and developing economies has become countercyclical (or less procyclical), i.e., “graduated,” since the 1980s, as most clearly demonstrated during the Great Recession. The move towards graduation is most pronounced for those economies with greater fiscal space, which suggests that fiscal space matters for a government’s ability to implement countercyclical fiscal policy. 2018-08-06T19:19:59Z 2018-08-06T19:19:59Z 2018 Journal Article Emerging Markets Finance and Trade 1540-496X http://hdl.handle.net/10986/30148 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Taylor and Francis Publications & Research :: Journal Article Publications & Research |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| topic |
BUSINESS CYCLES FISCAL TRENDS FISCAL POLICY FISCAL SPACE EMERGING MARKET ECONOMIES DEVELOPING COUNTRIES RECESSION |
| spellingShingle |
BUSINESS CYCLES FISCAL TRENDS FISCAL POLICY FISCAL SPACE EMERGING MARKET ECONOMIES DEVELOPING COUNTRIES RECESSION Huidrom, Raju Kose, M. Ayhan Ohnsorge, Franziska L. Challenges of Fiscal Policy in Emerging and Developing Economies |
| description |
This article presents a systematic analysis of the availability and use of fiscal space in emerging and developing economies. We report two major results. First, emerging and developing economies built fiscal space in the run-up to the Great Recession of 2008–2009, which was then used for stimulus. Since then, fiscal space has shrunk and remains narrow as these economies have taken advantage of historically low interest rates. Second, fiscal policy in emerging and developing economies has become countercyclical (or less procyclical), i.e., “graduated,” since the 1980s, as most clearly demonstrated during the Great Recession. The move towards graduation is most pronounced for those economies with greater fiscal space, which suggests that fiscal space matters for a government’s ability to implement countercyclical fiscal policy. |
| format |
Journal Article |
| author |
Huidrom, Raju Kose, M. Ayhan Ohnsorge, Franziska L. |
| author_facet |
Huidrom, Raju Kose, M. Ayhan Ohnsorge, Franziska L. |
| author_sort |
Huidrom, Raju |
| title |
Challenges of Fiscal Policy in Emerging and Developing Economies |
| title_short |
Challenges of Fiscal Policy in Emerging and Developing Economies |
| title_full |
Challenges of Fiscal Policy in Emerging and Developing Economies |
| title_fullStr |
Challenges of Fiscal Policy in Emerging and Developing Economies |
| title_full_unstemmed |
Challenges of Fiscal Policy in Emerging and Developing Economies |
| title_sort |
challenges of fiscal policy in emerging and developing economies |
| publisher |
Taylor and Francis |
| publishDate |
2018 |
| url |
http://hdl.handle.net/10986/30148 |
| _version_ |
1764471427731292160 |