1.

Record Nr.

UNINA9910826086003321

Autore

Mitra Pritha <1974->

Titolo

Post-crisis recovery : when does increased fiscal discipline work? / / prepared by Pritha Mitra

Pubbl/distr/stampa

Washington, D.C., : International Monetary Fund, IMF Institute, c2006

ISBN

1-4623-7805-6

1-4527-6729-7

1-283-51291-2

1-4519-0932-2

9786613825360

Edizione

[1st ed.]

Descrizione fisica

1 online resource (45 p.)

Collana

IMF working paper ; ; WP/06/219

Soggetti

Financial crises - Developing countries - Econometric models

Fiscal policy - Developing countries - Econometric models

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"September 2006."

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

""Contents""; ""I. INTRODUCTION""; ""II. BACKGROUND""; ""III. THE MODEL""; ""A. Households""; ""B. Firms""; ""C. Government""; ""D. Domestic Financial Intermediary""; ""E. Foreign Creditor""; ""IV. EQUILIBRIUM CONDITIONS""; ""V. PARAMETERS""; ""VI. SIMULATIONS""; ""A. The Base Case""; ""B. Application of Disciplined Fiscal Policy""; ""C. Application of Simulation Results to Korea and Thailand""; ""VII. CONCLUSIONS AND FURTHER RESEARCH""; ""References""; ""Appendix: Simulated Paths of Variables""

Sommario/riassunto

Emerging market financial crises during the late 1990s were marked by sudden withdrawals of funds by foreign creditors, resulting in production declines. The IMF favored positive signals to potential foreign creditors and initially recommended disciplined fiscal policy during the height of crisis, countering standard Keynesian recommendations of expansionary fiscal stimulus. This paper formulates an open-economy general equilibrium model for resolving this policy conundrum and analyzing the impact of disciplined fiscal policy on post-crisis recovery. The model demonstrates via simulations that disciplined fiscal policy will improve (worsen) post-crisis recovery



in the presence (absence) of appropriately defined production flexibility.