Global Fiscal Adjustment and Trade Rebalancing : Global Fiscal Adjustment and Trade Rebalancing
The emergence of substantial fiscal deficits and a large build up of government debt in major advanced economies will inevitably lead to a period of fiscal consolidation in coming years. In an earlier paper, McKibbin and Stoeckel (2010) explored th...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2012/04/16235041/global-fiscal-adjustment-trade-rebalancing-global-fiscal-adjustment-trade-rebalancing http://hdl.handle.net/10986/6047 |
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okr-10986-6047 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ADJUSTMENT COSTS ADVANCED COUNTRIES ADVANCED COUNTRY ADVANCED ECONOMIES ADVANCED ECONOMY AFFILIATED ORGANIZATIONS AGGREGATE CONSUMPTION AGGREGATE DEMAND AGGREGATE INVESTMENT AGRICULTURE ASSET PRICE ASSET VALUATION BANK BALANCE SHEETS BANK POLICY BENCHMARK BOND YIELDS BORROWER BUDGET SURPLUS CAPITAL ACCOUNT CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL INVESTMENT CAPITAL OUTFLOW CAPITAL OUTFLOWS CAPITAL RETURN CAPITAL RETURNS CAPITAL STOCK CAPITAL STOCKS CENTRAL BANK CENTRAL BANKS CONSOLIDATION CONSOLIDATIONS CONSUMERS CREDIBILITY CREDIT GROWTH CURRENCY CURRENCY REGIME CURRENT ACCOUNT CURRENT ACCOUNT DEFICITS DEBT DEBT BURDEN DEBT LEVELS DEBT RATIOS DEBT SERVICE DEBTS DECLINE IN INVESTMENT DEPRECIATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIMINISHING RETURNS DISPOSABLE INCOME DURABLES ECONOMIC CONDITIONS ECONOMIC CONTRACTION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC OUTCOMES ECONOMIC OUTLOOK ECONOMIC POLICY ECONOMIC RESEARCH ELASTICITY EMERGING ECONOMIES EQUILIBRIUM EURO ZONE EXCHANGE RATE EXCHANGE RATE APPRECIATION EXCHANGE RATE POLICY EXCHANGE RATES EXPANSIONARY MONETARY POLICY EXPECTED RETURNS EXPENDITURE EXPENDITURE INCREASE EXPORTERS EXPORTS FEDERAL RESERVE FINANCIAL ASSETS FINANCIAL CAPITAL FINANCIAL CRISIS FINANCIAL FLOW FISCAL BALANCE FISCAL BALANCES FISCAL CONSOLIDATION FISCAL DEFICIT FISCAL DEFICITS FISCAL DISCIPLINE FISCAL POLICY FISCAL POSITION FOREIGN EXCHANGE FREE BOND GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODEL GLOBAL ECONOMY GLOBAL TRADE GOVERNMENT BORROWING GOVERNMENT DEBT GOVERNMENT DEFICIT GOVERNMENT DEFICITS GOVERNMENT EXPENDITURE GOVERNMENT INVESTMENT GOVERNMENT SPENDING GROSS DEBT HOLDING HUMAN CAPITAL IMBALANCE IMBALANCES IMPORTS INCOME LEVELS INFLATION INFLOW OF CAPITAL INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INITIAL DEBT INTEREST PAYMENTS INTEREST RATE CHANGES INTEREST RATES INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL MACROECONOMICS LENDER LEVEL OF DEBT LONG BOND LOOSE MONETARY POLICY MACROECONOMIC ANALYSIS MACROECONOMIC EFFECTS MACROECONOMICS MARGINAL PRODUCT MARKET FAILURE MARKET FORCES MARKET VALUATION MONETARY ECONOMICS MONETARY FUND MONETARY POLICY MONETARY POLICY INDEPENDENCE MULTIPLIERS NATIONAL CURRENCY NET CAPITAL NET EXPORTS NOMINAL EXCHANGE RATE NOMINAL INTEREST RATE NOMINAL INTEREST RATES NOMINAL WAGE OPTIMIZATION OTHER CURRENCIES OUTPUT OUTPUT LOSSES PEG POLITICAL ECONOMY POPULATION GROWTH POSITIVE SPILLOVER PRIVATE CAPITAL PRIVATE INVESTMENT PRIVATE RETURNS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC BORROWING PUBLIC DEBT PUBLIC DEFICITS PUBLIC EXPENDITURE RATE OF RETURN RATES OF RETURN REAL EXCHANGE RATES REAL GDP REAL INTEREST REAL INTEREST RATES RECESSION RETURN RISK PREMIUMS SAVINGS SHORT INTEREST SOVEREIGN BOND SOVEREIGN RISK STEADY STATE STOCK CHANGE STOCK DATA TAX TAX LIABILITIES TELECOMMUNICATIONS TRADE BALANCE TRADE BALANCES TRADE BARRIER TRADE DEFICIT TRADE PATTERNS TRADE PROTECTION TRADE SURPLUSES TRUSTEES UNEMPLOYMENT VALUE ADDED WEALTH WORLD ECONOMY |
| spellingShingle |
ACCOUNTING ADJUSTMENT COSTS ADVANCED COUNTRIES ADVANCED COUNTRY ADVANCED ECONOMIES ADVANCED ECONOMY AFFILIATED ORGANIZATIONS AGGREGATE CONSUMPTION AGGREGATE DEMAND AGGREGATE INVESTMENT AGRICULTURE ASSET PRICE ASSET VALUATION BANK BALANCE SHEETS BANK POLICY BENCHMARK BOND YIELDS BORROWER BUDGET SURPLUS CAPITAL ACCOUNT CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL INVESTMENT CAPITAL OUTFLOW CAPITAL OUTFLOWS CAPITAL RETURN CAPITAL RETURNS CAPITAL STOCK CAPITAL STOCKS CENTRAL BANK CENTRAL BANKS CONSOLIDATION CONSOLIDATIONS CONSUMERS CREDIBILITY CREDIT GROWTH CURRENCY CURRENCY REGIME CURRENT ACCOUNT CURRENT ACCOUNT DEFICITS DEBT DEBT BURDEN DEBT LEVELS DEBT RATIOS DEBT SERVICE DEBTS DECLINE IN INVESTMENT DEPRECIATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIMINISHING RETURNS DISPOSABLE INCOME DURABLES ECONOMIC CONDITIONS ECONOMIC CONTRACTION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC OUTCOMES ECONOMIC OUTLOOK ECONOMIC POLICY ECONOMIC RESEARCH ELASTICITY EMERGING ECONOMIES EQUILIBRIUM EURO ZONE EXCHANGE RATE EXCHANGE RATE APPRECIATION EXCHANGE RATE POLICY EXCHANGE RATES EXPANSIONARY MONETARY POLICY EXPECTED RETURNS EXPENDITURE EXPENDITURE INCREASE EXPORTERS EXPORTS FEDERAL RESERVE FINANCIAL ASSETS FINANCIAL CAPITAL FINANCIAL CRISIS FINANCIAL FLOW FISCAL BALANCE FISCAL BALANCES FISCAL CONSOLIDATION FISCAL DEFICIT FISCAL DEFICITS FISCAL DISCIPLINE FISCAL POLICY FISCAL POSITION FOREIGN EXCHANGE FREE BOND GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODEL GLOBAL ECONOMY GLOBAL TRADE GOVERNMENT BORROWING GOVERNMENT DEBT GOVERNMENT DEFICIT GOVERNMENT DEFICITS GOVERNMENT EXPENDITURE GOVERNMENT INVESTMENT GOVERNMENT SPENDING GROSS DEBT HOLDING HUMAN CAPITAL IMBALANCE IMBALANCES IMPORTS INCOME LEVELS INFLATION INFLOW OF CAPITAL INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INITIAL DEBT INTEREST PAYMENTS INTEREST RATE CHANGES INTEREST RATES INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL MACROECONOMICS LENDER LEVEL OF DEBT LONG BOND LOOSE MONETARY POLICY MACROECONOMIC ANALYSIS MACROECONOMIC EFFECTS MACROECONOMICS MARGINAL PRODUCT MARKET FAILURE MARKET FORCES MARKET VALUATION MONETARY ECONOMICS MONETARY FUND MONETARY POLICY MONETARY POLICY INDEPENDENCE MULTIPLIERS NATIONAL CURRENCY NET CAPITAL NET EXPORTS NOMINAL EXCHANGE RATE NOMINAL INTEREST RATE NOMINAL INTEREST RATES NOMINAL WAGE OPTIMIZATION OTHER CURRENCIES OUTPUT OUTPUT LOSSES PEG POLITICAL ECONOMY POPULATION GROWTH POSITIVE SPILLOVER PRIVATE CAPITAL PRIVATE INVESTMENT PRIVATE RETURNS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC BORROWING PUBLIC DEBT PUBLIC DEFICITS PUBLIC EXPENDITURE RATE OF RETURN RATES OF RETURN REAL EXCHANGE RATES REAL GDP REAL INTEREST REAL INTEREST RATES RECESSION RETURN RISK PREMIUMS SAVINGS SHORT INTEREST SOVEREIGN BOND SOVEREIGN RISK STEADY STATE STOCK CHANGE STOCK DATA TAX TAX LIABILITIES TELECOMMUNICATIONS TRADE BALANCE TRADE BALANCES TRADE BARRIER TRADE DEFICIT TRADE PATTERNS TRADE PROTECTION TRADE SURPLUSES TRUSTEES UNEMPLOYMENT VALUE ADDED WEALTH WORLD ECONOMY McKibbin, Warwick J. Stoeckel, Andrew B. Lu, YingYing Global Fiscal Adjustment and Trade Rebalancing : Global Fiscal Adjustment and Trade Rebalancing |
| relation |
Policy Research Working Paper ; No. 6044 |
| description |
The emergence of substantial fiscal
deficits and a large build up of government debt in major
advanced economies will inevitably lead to a period of
fiscal consolidation in coming years. In an earlier paper,
McKibbin and Stoeckel (2010) explored the effects of this
fiscal adjustment in advanced economies on the global
economic outlook. This paper focuses on the differences
between the impacts of fiscal policy in advanced versus
emerging economies. In particular, the need for more fiscal
spending on infrastructure in emerging economies and the
need for fiscal consolidation in advanced economies leads
naturally to the question of what this asymmetric fiscal
adjustment might do to global trade balances as well as
global economic growth over the coming decades. The
adjustment needed in both regions is substantial and the
asymmetry of the adjustment implies important consequences
for trade and capital flows between regions as well as asset
price adjustments within and between regions. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
McKibbin, Warwick J. Stoeckel, Andrew B. Lu, YingYing |
| author_facet |
McKibbin, Warwick J. Stoeckel, Andrew B. Lu, YingYing |
| author_sort |
McKibbin, Warwick J. |
| title |
Global Fiscal Adjustment and Trade
Rebalancing : Global Fiscal Adjustment and Trade Rebalancing |
| title_short |
Global Fiscal Adjustment and Trade
Rebalancing : Global Fiscal Adjustment and Trade Rebalancing |
| title_full |
Global Fiscal Adjustment and Trade
Rebalancing : Global Fiscal Adjustment and Trade Rebalancing |
| title_fullStr |
Global Fiscal Adjustment and Trade
Rebalancing : Global Fiscal Adjustment and Trade Rebalancing |
| title_full_unstemmed |
Global Fiscal Adjustment and Trade
Rebalancing : Global Fiscal Adjustment and Trade Rebalancing |
| title_sort |
global fiscal adjustment and trade
rebalancing : global fiscal adjustment and trade rebalancing |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2012/04/16235041/global-fiscal-adjustment-trade-rebalancing-global-fiscal-adjustment-trade-rebalancing http://hdl.handle.net/10986/6047 |
| _version_ |
1764397232471146496 |
| spelling |
okr-10986-60472021-04-23T14:02:24Z Global Fiscal Adjustment and Trade Rebalancing : Global Fiscal Adjustment and Trade Rebalancing McKibbin, Warwick J. Stoeckel, Andrew B. Lu, YingYing ACCOUNTING ADJUSTMENT COSTS ADVANCED COUNTRIES ADVANCED COUNTRY ADVANCED ECONOMIES ADVANCED ECONOMY AFFILIATED ORGANIZATIONS AGGREGATE CONSUMPTION AGGREGATE DEMAND AGGREGATE INVESTMENT AGRICULTURE ASSET PRICE ASSET VALUATION BANK BALANCE SHEETS BANK POLICY BENCHMARK BOND YIELDS BORROWER BUDGET SURPLUS CAPITAL ACCOUNT CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL INVESTMENT CAPITAL OUTFLOW CAPITAL OUTFLOWS CAPITAL RETURN CAPITAL RETURNS CAPITAL STOCK CAPITAL STOCKS CENTRAL BANK CENTRAL BANKS CONSOLIDATION CONSOLIDATIONS CONSUMERS CREDIBILITY CREDIT GROWTH CURRENCY CURRENCY REGIME CURRENT ACCOUNT CURRENT ACCOUNT DEFICITS DEBT DEBT BURDEN DEBT LEVELS DEBT RATIOS DEBT SERVICE DEBTS DECLINE IN INVESTMENT DEPRECIATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIMINISHING RETURNS DISPOSABLE INCOME DURABLES ECONOMIC CONDITIONS ECONOMIC CONTRACTION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC OUTCOMES ECONOMIC OUTLOOK ECONOMIC POLICY ECONOMIC RESEARCH ELASTICITY EMERGING ECONOMIES EQUILIBRIUM EURO ZONE EXCHANGE RATE EXCHANGE RATE APPRECIATION EXCHANGE RATE POLICY EXCHANGE RATES EXPANSIONARY MONETARY POLICY EXPECTED RETURNS EXPENDITURE EXPENDITURE INCREASE EXPORTERS EXPORTS FEDERAL RESERVE FINANCIAL ASSETS FINANCIAL CAPITAL FINANCIAL CRISIS FINANCIAL FLOW FISCAL BALANCE FISCAL BALANCES FISCAL CONSOLIDATION FISCAL DEFICIT FISCAL DEFICITS FISCAL DISCIPLINE FISCAL POLICY FISCAL POSITION FOREIGN EXCHANGE FREE BOND GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODEL GLOBAL ECONOMY GLOBAL TRADE GOVERNMENT BORROWING GOVERNMENT DEBT GOVERNMENT DEFICIT GOVERNMENT DEFICITS GOVERNMENT EXPENDITURE GOVERNMENT INVESTMENT GOVERNMENT SPENDING GROSS DEBT HOLDING HUMAN CAPITAL IMBALANCE IMBALANCES IMPORTS INCOME LEVELS INFLATION INFLOW OF CAPITAL INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INITIAL DEBT INTEREST PAYMENTS INTEREST RATE CHANGES INTEREST RATES INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL MACROECONOMICS LENDER LEVEL OF DEBT LONG BOND LOOSE MONETARY POLICY MACROECONOMIC ANALYSIS MACROECONOMIC EFFECTS MACROECONOMICS MARGINAL PRODUCT MARKET FAILURE MARKET FORCES MARKET VALUATION MONETARY ECONOMICS MONETARY FUND MONETARY POLICY MONETARY POLICY INDEPENDENCE MULTIPLIERS NATIONAL CURRENCY NET CAPITAL NET EXPORTS NOMINAL EXCHANGE RATE NOMINAL INTEREST RATE NOMINAL INTEREST RATES NOMINAL WAGE OPTIMIZATION OTHER CURRENCIES OUTPUT OUTPUT LOSSES PEG POLITICAL ECONOMY POPULATION GROWTH POSITIVE SPILLOVER PRIVATE CAPITAL PRIVATE INVESTMENT PRIVATE RETURNS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC BORROWING PUBLIC DEBT PUBLIC DEFICITS PUBLIC EXPENDITURE RATE OF RETURN RATES OF RETURN REAL EXCHANGE RATES REAL GDP REAL INTEREST REAL INTEREST RATES RECESSION RETURN RISK PREMIUMS SAVINGS SHORT INTEREST SOVEREIGN BOND SOVEREIGN RISK STEADY STATE STOCK CHANGE STOCK DATA TAX TAX LIABILITIES TELECOMMUNICATIONS TRADE BALANCE TRADE BALANCES TRADE BARRIER TRADE DEFICIT TRADE PATTERNS TRADE PROTECTION TRADE SURPLUSES TRUSTEES UNEMPLOYMENT VALUE ADDED WEALTH WORLD ECONOMY The emergence of substantial fiscal deficits and a large build up of government debt in major advanced economies will inevitably lead to a period of fiscal consolidation in coming years. In an earlier paper, McKibbin and Stoeckel (2010) explored the effects of this fiscal adjustment in advanced economies on the global economic outlook. This paper focuses on the differences between the impacts of fiscal policy in advanced versus emerging economies. In particular, the need for more fiscal spending on infrastructure in emerging economies and the need for fiscal consolidation in advanced economies leads naturally to the question of what this asymmetric fiscal adjustment might do to global trade balances as well as global economic growth over the coming decades. The adjustment needed in both regions is substantial and the asymmetry of the adjustment implies important consequences for trade and capital flows between regions as well as asset price adjustments within and between regions. 2012-04-27T07:44:33Z 2012-04-27T07:44:33Z 2012-04 http://documents.worldbank.org/curated/en/2012/04/16235041/global-fiscal-adjustment-trade-rebalancing-global-fiscal-adjustment-trade-rebalancing http://hdl.handle.net/10986/6047 English Policy Research Working Paper ; No. 6044 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |