The Global Dimension to Fiscal Sustainability

This paper provides a new perspective of fiscal sustainability and financial globalization in emerging and industrial countries. We highlight the importance of global capital market shocks for fiscal sustainability, a relationship which has hitherto been ignored in the empirical literature. Using a...

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Main Authors:	Byrne, Joseph P., Fiess, Norbert, MacDonald, Ronald
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Fiscal Policy E620 National Deficit Surplus H620 National Debt Debt Management Sovereign Debt H630
Online Access:	http://hdl.handle.net/10986/5483

id	okr-10986-5483
recordtype	oai_dc
spelling	okr-10986-54832021-04-23T14:02:22Z The Global Dimension to Fiscal Sustainability Byrne, Joseph P. Fiess, Norbert MacDonald, Ronald Fiscal Policy E620 National Deficit Surplus H620 National Debt Debt Management Sovereign Debt H630 This paper provides a new perspective of fiscal sustainability and financial globalization in emerging and industrial countries. We highlight the importance of global capital market shocks for fiscal sustainability, a relationship which has hitherto been ignored in the empirical literature. Using a factor model we demonstrate that the relationship between deficit and debt is conditional upon a global factor and we suggest that this global factor is related to world-wide liquidity. We also demonstrate that this acts as a constraint on emerging market economies' fiscal policy. 2012-03-30T07:33:03Z 2012-03-30T07:33:03Z 2011 Journal Article Journal of Macroeconomics 01640704 http://hdl.handle.net/10986/5483 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Fiscal Policy E620 National Deficit Surplus H620 National Debt Debt Management Sovereign Debt H630
spellingShingle	Fiscal Policy E620 National Deficit Surplus H620 National Debt Debt Management Sovereign Debt H630 Byrne, Joseph P. Fiess, Norbert MacDonald, Ronald The Global Dimension to Fiscal Sustainability
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper provides a new perspective of fiscal sustainability and financial globalization in emerging and industrial countries. We highlight the importance of global capital market shocks for fiscal sustainability, a relationship which has hitherto been ignored in the empirical literature. Using a factor model we demonstrate that the relationship between deficit and debt is conditional upon a global factor and we suggest that this global factor is related to world-wide liquidity. We also demonstrate that this acts as a constraint on emerging market economies' fiscal policy.
format	Journal Article
author	Byrne, Joseph P. Fiess, Norbert MacDonald, Ronald
author_facet	Byrne, Joseph P. Fiess, Norbert MacDonald, Ronald
author_sort	Byrne, Joseph P.
title	The Global Dimension to Fiscal Sustainability
title_short	The Global Dimension to Fiscal Sustainability
title_full	The Global Dimension to Fiscal Sustainability
title_fullStr	The Global Dimension to Fiscal Sustainability
title_full_unstemmed	The Global Dimension to Fiscal Sustainability
title_sort	global dimension to fiscal sustainability
publishDate	2012
url	http://hdl.handle.net/10986/5483
_version_	1764395215146188800

The Global Dimension to Fiscal Sustainability

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