Fiscal Policy and the Current Account

Released on by International Monetary Fund
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  • Fiscal Policy and the Current Account Book Detail

  • Author : International Monetary Fund
  • Release Date : 2010-05-01
  • Publisher : International Monetary Fund
  • Genre : Business & Economics
  • Pages : 32
  • ISBN 13 : 1455200808
  • File Size : 28,28 MB
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Fiscal Policy and the Current Account by International Monetary Fund PDF Summary

Book Description: This paper examines the relationship between fiscal policy and the current account, drawing on a larger country sample than in previous studies and using panel regressions, vector autoregressions, and an analysis of large fiscal and external adjustments. On average, a strengthening in the fiscal balance by 1 percentage point of GDP is associated with a current account improvement of 0.2–0.3 percentage point of GDP. This association is as strong in emerging and low-income countries as it is in advanced economies; and significantly higher when output is above potential.

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Fiscal Policy and the Current Account

Fiscal Policy and the Current Account

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