Do Middle-Income Countries Continue to Have the Ability to Deal with the Global Financial Crisis?
This paper introduces an "index of macroeconomic space" -- demonstrating the ability of a country to run a countercyclical fiscal policy or a fiscal stimulus at any point in time -- to show how a sample of 20 mostly middle-income countrie...
| Main Authors: | , , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
|
| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100726102850 http://hdl.handle.net/10986/3865 |
| id |
okr-10986-3865 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGGREGATE DEMAND ASSETS BALANCE OF PAYMENTS BANK CREDIT BANK LENDING BASIS POINTS BILATERAL CREDITORS BOND INDEX BOND ISSUANCES BONDS BORROWING COSTS CAPITAL FLOW CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CENTRAL BANKS COMMERCIAL BANKS COMMODITIES COMMODITY COMMODITY PRICE COMMODITY PRICES CONTINGENT LIABILITIES CONTINGENT LIABILITY CREDIBILITY CREDIT EXPANSION CREDIT GROWTH CREDIT LINE CREDIT MARKETS CREDITORS CURRENT ACCOUNT CURRENT ACCOUNT BALANCES CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT ACCOUNT SURPLUSES DEBT DEBT ACCUMULATION DEBT BURDENS DEBT CRISIS DEBT DYNAMICS DEBT INSTRUMENTS DEBT LEVEL DEBT LEVELS DEBT MANAGEMENT DEBT MANAGEMENT CAPACITY DEBT PORTFOLIOS DEBT RATIO DEBT REDUCTION DEBT RELIEF DEBT SOURCE DEBT STOCKS DEBT SUSTAINABILITY DEBT SUSTAINABILITY ANALYSES DEVALUATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC CREDIT DOMESTIC CURRENCY DOMESTIC DEBT DOMESTIC INTEREST RATE ECONOMIC DOWNTURN ECONOMIC OUTLOOK EMERGING MARKET EMERGING MARKET BOND EMERGING MARKETS EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXCHANGE RATES EXPANSIONARY FISCAL POLICIES EXPANSIONARY POLICIES EXPENDITURE EXPENDITURES EXPORTER EXPORTERS EXPORTS EXTERNAL DEBT EXTERNAL DEBT BURDENS EXTERNAL DEBT SUSTAINABILITY EXTERNAL FINANCING EXTERNAL PUBLIC DEBT FEDERAL RESERVE FINANCIAL CRISIS FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL POSITION FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL STRUCTURE FISCAL BALANCE FISCAL BALANCES FISCAL CONSOLIDATION FISCAL DEFICITS FISCAL EXPENDITURE FISCAL POLICIES FISCAL POLICY FIXED EXCHANGE RATE FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN EXCHANGE RISK GDP GDP DEFLATOR GDP PER CAPITA GLOBAL ECONOMIC PROSPECTS GOVERNMENT REVENUE GROSS DEBT GROWTH RATE GROWTH RATES HIGH DEBT INCOME INDEBTEDNESS INFLATION INFLATION TARGETING INFLATIONARY PRESSURE INFLATIONARY PRESSURES INSTRUMENT INTEREST EXPENDITURE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL CAPITAL MARKETS INTERNATIONAL CREDIT INTERNATIONAL INTEREST INTERNATIONAL INTEREST RATES INTERNATIONAL MARKET INVENTORY LEVELS OF DEBT LIQUIDITY LIQUIDITY SUPPORT LOCAL CURRENCY LOW DEBT LOW-INCOME COUNTRIES MACROECONOMIC MANAGEMENT MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMIC VARIABLES MARKET ACCESS MARKET CONDITIONS MARKET PARTICIPANTS MATURITIES MIDDLE-INCOME COUNTRIES MIDDLE-INCOME COUNTRY MONETARY FUND MONETARY POLICY NATIONAL INCOME NET DEBT NET EXTERNAL DEBT NOMINAL INTEREST RATE NUMERICAL VALUE OUTPUT OUTSTANDING CLAIMS POLICY RESPONSE POLITICAL CYCLE PORTFOLIO PORTFOLIO CAPITAL PORTFOLIO EQUITY PORTFOLIOS POTENTIAL OUTPUT PRICE RISKS PRIVATE CREDIT PRIVATE EXTERNAL DEBT PUBLIC DEBT PUBLIC DEBT STOCK PUBLIC FINANCES PUBLIC SPENDING REAL GDP REMITTANCES RETURNS RISK ASSESSMENTS SAFETY NET SHARE OF INCOME SHORT-TERM DEBT SOCIAL SAFETY NET SOVEREIGN DEBT SOVEREIGN ENTITIES STOCK OF DEBT SUB-NATIONAL ENTITIES SUSTAINABILITY ANALYSES SWAP SWAPS TOTAL DEBT TOTAL EXTERNAL DEBT TREASURIES TROUGH UNEMPLOYMENT WARRANTS |
| spellingShingle |
AGGREGATE DEMAND ASSETS BALANCE OF PAYMENTS BANK CREDIT BANK LENDING BASIS POINTS BILATERAL CREDITORS BOND INDEX BOND ISSUANCES BONDS BORROWING COSTS CAPITAL FLOW CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CENTRAL BANKS COMMERCIAL BANKS COMMODITIES COMMODITY COMMODITY PRICE COMMODITY PRICES CONTINGENT LIABILITIES CONTINGENT LIABILITY CREDIBILITY CREDIT EXPANSION CREDIT GROWTH CREDIT LINE CREDIT MARKETS CREDITORS CURRENT ACCOUNT CURRENT ACCOUNT BALANCES CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT ACCOUNT SURPLUSES DEBT DEBT ACCUMULATION DEBT BURDENS DEBT CRISIS DEBT DYNAMICS DEBT INSTRUMENTS DEBT LEVEL DEBT LEVELS DEBT MANAGEMENT DEBT MANAGEMENT CAPACITY DEBT PORTFOLIOS DEBT RATIO DEBT REDUCTION DEBT RELIEF DEBT SOURCE DEBT STOCKS DEBT SUSTAINABILITY DEBT SUSTAINABILITY ANALYSES DEVALUATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC CREDIT DOMESTIC CURRENCY DOMESTIC DEBT DOMESTIC INTEREST RATE ECONOMIC DOWNTURN ECONOMIC OUTLOOK EMERGING MARKET EMERGING MARKET BOND EMERGING MARKETS EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXCHANGE RATES EXPANSIONARY FISCAL POLICIES EXPANSIONARY POLICIES EXPENDITURE EXPENDITURES EXPORTER EXPORTERS EXPORTS EXTERNAL DEBT EXTERNAL DEBT BURDENS EXTERNAL DEBT SUSTAINABILITY EXTERNAL FINANCING EXTERNAL PUBLIC DEBT FEDERAL RESERVE FINANCIAL CRISIS FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL POSITION FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL STRUCTURE FISCAL BALANCE FISCAL BALANCES FISCAL CONSOLIDATION FISCAL DEFICITS FISCAL EXPENDITURE FISCAL POLICIES FISCAL POLICY FIXED EXCHANGE RATE FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN EXCHANGE RISK GDP GDP DEFLATOR GDP PER CAPITA GLOBAL ECONOMIC PROSPECTS GOVERNMENT REVENUE GROSS DEBT GROWTH RATE GROWTH RATES HIGH DEBT INCOME INDEBTEDNESS INFLATION INFLATION TARGETING INFLATIONARY PRESSURE INFLATIONARY PRESSURES INSTRUMENT INTEREST EXPENDITURE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL CAPITAL MARKETS INTERNATIONAL CREDIT INTERNATIONAL INTEREST INTERNATIONAL INTEREST RATES INTERNATIONAL MARKET INVENTORY LEVELS OF DEBT LIQUIDITY LIQUIDITY SUPPORT LOCAL CURRENCY LOW DEBT LOW-INCOME COUNTRIES MACROECONOMIC MANAGEMENT MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMIC VARIABLES MARKET ACCESS MARKET CONDITIONS MARKET PARTICIPANTS MATURITIES MIDDLE-INCOME COUNTRIES MIDDLE-INCOME COUNTRY MONETARY FUND MONETARY POLICY NATIONAL INCOME NET DEBT NET EXTERNAL DEBT NOMINAL INTEREST RATE NUMERICAL VALUE OUTPUT OUTSTANDING CLAIMS POLICY RESPONSE POLITICAL CYCLE PORTFOLIO PORTFOLIO CAPITAL PORTFOLIO EQUITY PORTFOLIOS POTENTIAL OUTPUT PRICE RISKS PRIVATE CREDIT PRIVATE EXTERNAL DEBT PUBLIC DEBT PUBLIC DEBT STOCK PUBLIC FINANCES PUBLIC SPENDING REAL GDP REMITTANCES RETURNS RISK ASSESSMENTS SAFETY NET SHARE OF INCOME SHORT-TERM DEBT SOCIAL SAFETY NET SOVEREIGN DEBT SOVEREIGN ENTITIES STOCK OF DEBT SUB-NATIONAL ENTITIES SUSTAINABILITY ANALYSES SWAP SWAPS TOTAL DEBT TOTAL EXTERNAL DEBT TREASURIES TROUGH UNEMPLOYMENT WARRANTS van Doorn, Ralph Suri, Vivek Gooptu, Sudarshan Do Middle-Income Countries Continue to Have the Ability to Deal with the Global Financial Crisis? |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5381 |
| description |
This paper introduces an "index of
macroeconomic space" -- demonstrating the ability of a
country to run a countercyclical fiscal policy or a fiscal
stimulus at any point in time -- to show how a sample of 20
mostly middle-income countries had entered the 2008 global
financial crisis with different initial conditions that, in
turn, determined their ability to respond to this crisis.
Since 2008, many have implemented expansionary fiscal
policies and have used up available macroeconomic space.
Most have had to resort to increased borrowing by the public
sector, both externally and domestically. Can the
middle-income countries restore their pre-2008 macroeconomic
space (to the level given by historical averages of key
macroeconomic variables) or contain it from further
deterioration in the medium term? In an endeavor to address
this question, this paper shows, through illustrative
scenarios, that the room to maneuver for some countries is
somewhat limited unless they embark on severe, unprecedented
fiscal adjustments or they may need more time to do so than
current projections seem to suggest. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
van Doorn, Ralph Suri, Vivek Gooptu, Sudarshan |
| author_facet |
van Doorn, Ralph Suri, Vivek Gooptu, Sudarshan |
| author_sort |
van Doorn, Ralph |
| title |
Do Middle-Income Countries Continue to Have the Ability to Deal with the Global Financial Crisis? |
| title_short |
Do Middle-Income Countries Continue to Have the Ability to Deal with the Global Financial Crisis? |
| title_full |
Do Middle-Income Countries Continue to Have the Ability to Deal with the Global Financial Crisis? |
| title_fullStr |
Do Middle-Income Countries Continue to Have the Ability to Deal with the Global Financial Crisis? |
| title_full_unstemmed |
Do Middle-Income Countries Continue to Have the Ability to Deal with the Global Financial Crisis? |
| title_sort |
do middle-income countries continue to have the ability to deal with the global financial crisis? |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100726102850 http://hdl.handle.net/10986/3865 |
| _version_ |
1764388738001010688 |
| spelling |
okr-10986-38652021-04-23T14:02:13Z Do Middle-Income Countries Continue to Have the Ability to Deal with the Global Financial Crisis? van Doorn, Ralph Suri, Vivek Gooptu, Sudarshan AGGREGATE DEMAND ASSETS BALANCE OF PAYMENTS BANK CREDIT BANK LENDING BASIS POINTS BILATERAL CREDITORS BOND INDEX BOND ISSUANCES BONDS BORROWING COSTS CAPITAL FLOW CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CENTRAL BANKS COMMERCIAL BANKS COMMODITIES COMMODITY COMMODITY PRICE COMMODITY PRICES CONTINGENT LIABILITIES CONTINGENT LIABILITY CREDIBILITY CREDIT EXPANSION CREDIT GROWTH CREDIT LINE CREDIT MARKETS CREDITORS CURRENT ACCOUNT CURRENT ACCOUNT BALANCES CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT ACCOUNT SURPLUSES DEBT DEBT ACCUMULATION DEBT BURDENS DEBT CRISIS DEBT DYNAMICS DEBT INSTRUMENTS DEBT LEVEL DEBT LEVELS DEBT MANAGEMENT DEBT MANAGEMENT CAPACITY DEBT PORTFOLIOS DEBT RATIO DEBT REDUCTION DEBT RELIEF DEBT SOURCE DEBT STOCKS DEBT SUSTAINABILITY DEBT SUSTAINABILITY ANALYSES DEVALUATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC CREDIT DOMESTIC CURRENCY DOMESTIC DEBT DOMESTIC INTEREST RATE ECONOMIC DOWNTURN ECONOMIC OUTLOOK EMERGING MARKET EMERGING MARKET BOND EMERGING MARKETS EXCHANGE RATE EXCHANGE RATE MOVEMENTS EXCHANGE RATES EXPANSIONARY FISCAL POLICIES EXPANSIONARY POLICIES EXPENDITURE EXPENDITURES EXPORTER EXPORTERS EXPORTS EXTERNAL DEBT EXTERNAL DEBT BURDENS EXTERNAL DEBT SUSTAINABILITY EXTERNAL FINANCING EXTERNAL PUBLIC DEBT FEDERAL RESERVE FINANCIAL CRISIS FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL POSITION FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL STRUCTURE FISCAL BALANCE FISCAL BALANCES FISCAL CONSOLIDATION FISCAL DEFICITS FISCAL EXPENDITURE FISCAL POLICIES FISCAL POLICY FIXED EXCHANGE RATE FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN EXCHANGE RISK GDP GDP DEFLATOR GDP PER CAPITA GLOBAL ECONOMIC PROSPECTS GOVERNMENT REVENUE GROSS DEBT GROWTH RATE GROWTH RATES HIGH DEBT INCOME INDEBTEDNESS INFLATION INFLATION TARGETING INFLATIONARY PRESSURE INFLATIONARY PRESSURES INSTRUMENT INTEREST EXPENDITURE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL CAPITAL MARKETS INTERNATIONAL CREDIT INTERNATIONAL INTEREST INTERNATIONAL INTEREST RATES INTERNATIONAL MARKET INVENTORY LEVELS OF DEBT LIQUIDITY LIQUIDITY SUPPORT LOCAL CURRENCY LOW DEBT LOW-INCOME COUNTRIES MACROECONOMIC MANAGEMENT MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMIC VARIABLES MARKET ACCESS MARKET CONDITIONS MARKET PARTICIPANTS MATURITIES MIDDLE-INCOME COUNTRIES MIDDLE-INCOME COUNTRY MONETARY FUND MONETARY POLICY NATIONAL INCOME NET DEBT NET EXTERNAL DEBT NOMINAL INTEREST RATE NUMERICAL VALUE OUTPUT OUTSTANDING CLAIMS POLICY RESPONSE POLITICAL CYCLE PORTFOLIO PORTFOLIO CAPITAL PORTFOLIO EQUITY PORTFOLIOS POTENTIAL OUTPUT PRICE RISKS PRIVATE CREDIT PRIVATE EXTERNAL DEBT PUBLIC DEBT PUBLIC DEBT STOCK PUBLIC FINANCES PUBLIC SPENDING REAL GDP REMITTANCES RETURNS RISK ASSESSMENTS SAFETY NET SHARE OF INCOME SHORT-TERM DEBT SOCIAL SAFETY NET SOVEREIGN DEBT SOVEREIGN ENTITIES STOCK OF DEBT SUB-NATIONAL ENTITIES SUSTAINABILITY ANALYSES SWAP SWAPS TOTAL DEBT TOTAL EXTERNAL DEBT TREASURIES TROUGH UNEMPLOYMENT WARRANTS This paper introduces an "index of macroeconomic space" -- demonstrating the ability of a country to run a countercyclical fiscal policy or a fiscal stimulus at any point in time -- to show how a sample of 20 mostly middle-income countries had entered the 2008 global financial crisis with different initial conditions that, in turn, determined their ability to respond to this crisis. Since 2008, many have implemented expansionary fiscal policies and have used up available macroeconomic space. Most have had to resort to increased borrowing by the public sector, both externally and domestically. Can the middle-income countries restore their pre-2008 macroeconomic space (to the level given by historical averages of key macroeconomic variables) or contain it from further deterioration in the medium term? In an endeavor to address this question, this paper shows, through illustrative scenarios, that the room to maneuver for some countries is somewhat limited unless they embark on severe, unprecedented fiscal adjustments or they may need more time to do so than current projections seem to suggest. 2012-03-19T18:41:11Z 2012-03-19T18:41:11Z 2010-07-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100726102850 http://hdl.handle.net/10986/3865 English Policy Research working paper ; no. WPS 5381 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |