scholarly journals Fiscal Policy Sustainability: Some Unpleasant European Evidence

2002 ◽  
Author(s):  
António Afonso
Keyword(s):  
Fiscal Policy ◽  
Fiscal Policy Sustainability

scholarly journals O Impacto da Política Fiscal nos Spreads dos Países Emergentes

2012 ◽  
Vol 10 (1) ◽  
pp. 31
Author(s):  
Katia Rocha ◽  
Ajax Moreira
Keyword(s):  
Fiscal Policy ◽  
Interest Rates ◽  
Emerging Market ◽  
External Shocks ◽  
Sovereign Spreads ◽  
Relevant Role ◽  
Fiscal Austerity ◽  
The Impact ◽  
Fiscal Policy Sustainability ◽  
Budget Surplus

Country risk or sovereign spreads affect directly the investment of companies and sovereigns, being an important figure to domestic interest rates and to economic growth. This paper analyzes the impact of fiscal policy on the determinants of the sovereign risk of 23 emerging market countries between 1995-2008. The results associate lower spreads to fiscal austerity, i.e. an accumulation of primary budget surplus that keeps the debt to GDP ratio constant over time. An increase of 1% on primary budget surplus decreases the spreads around 50 basis point. It evidences that fiscal policy sustainability plays a relevant role in determining the sovereign spreads besides contributing as a policy that mitigates external shocks.

Fiscal Policy Sustainability in Oil-Producing Countries

1994 ◽  
Vol 94 (137) ◽  
pp. 1 ◽  
Author(s):  
Sheila Bassett ◽  
Claire Liuksila ◽  
Alejandro García ◽  
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◽  
...  
Keyword(s):  
Fiscal Policy ◽  
Fiscal Policy Sustainability
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