Analysing the Sustainability of fiscal Deficits in Developing Countries
John T. Cuddington*
30 July 1996
7/17/98 revision (9/3/99)
Economics incision Georgetown University Washington, D.C., USA 20057-1036
E-mail: cuddingj@gunet.georgetown.edu
*with the assistance of Shihua Lu, PhD candidate at Georgetown.
Analysing the Sustainability of Fiscal Deficits in Developing Countries
by John T. Cuddington This paper surveys the upstart literature analysing fiscal deficit sustainability, more or less of which foc theatrical roles on the U.S. and ahead of time(a) industrial countries, in an attempt to assess its potential utility in the create country context. Both the accounting improvement and the largess value constraint (PVC) approach are considered. Sustainability analyses for developing countries typically involve issues that are not particularly consequential in the industrial country context. Reliance on seigniorage to pay deficits may be quantitatively much more authorized, although its use varies widely across LDCs. The distinction between domestic and foreign-currency espousal is central; concessional lending and grants may also make an important contribution to fiscal finance.
JEL Classification: F34 (International Lending and Debt Problems), E62 (Fiscal insurance insurance) O23 (Fiscal and Monetary Policy in Development) O011 (Macroeconomic Analyses of Economic Development) Key Words: fiscal policy, debt, sustainability, present value constraints
Analysing the Sustainability of Fiscal Deficits in Developing Countries
Sustainability is perhaps the most frequently used buzzword in economic policy making circles in the 1990s: sustainable development, sustainable environmental policies, sustainable debt and deficit levels. In the macroeconomic context, policy makers and analysts are frequently asked: Are current levels of fiscal deficits or public-sector debt sustainable? Are renewed capital inflows to LDCs of the sort that occurred in the early 1990s...If you want to get a full essay, order it on our website: Orderessay
If you want to get a full essay, wisit our page: write my essay .
No comments:
Post a Comment