04695oam 22012254 450 991095467040332120250426110035.0978661383071597814623155121462315518978145276630014527663049781283518260128351826097814519081211451908121(CKB)3360000000443995(EBL)3014418(SSID)ssj0000940827(PQKBManifestationID)11547858(PQKBTitleCode)TC0000940827(PQKBWorkID)10955896(PQKB)10329692(OCoLC)712989267(IMF)WPIEE2006016(MiAaPQ)EBC3014418(IMF)WPIEA2006016WPIEA2006016(EXLCZ)99336000000044399520020129d2006 uf 0engurcnu||||||||txtccrFiscal Policy and Financial Markets /Bernardin Akitoby, Thomas Stratmann1st ed.Washington, D.C. :International Monetary Fund,2006.1 online resource (26 p.)IMF Working Papers"January 2006."9781451862768 1451862768 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. PREVIOUS LITERATURE""; ""III. ANALYTICAL FRAMEWORK""; ""IV. CONCLUSIONS AND POLICY IMPLICATIONS""; ""REFERENCES""This paper introduces fiscal policy in a model of sovereign risk spreads ("spreads"). Using panel data from emerging market countries, we find that reductions in public expenditure are a more powerful tool for reducing spreads than increases in revenues. Specifically, cuts in current spending lower spreads by more than cuts in investment spending, and they also lower spreads by more than increases in revenue. We also show that debt-financed current spending increases sovereign risk by more than tax-financed current spending, suggesting that international investors have some preference for the latter. In line with the empirical literature on the determinants of spreads, we find that liquidity and solvency indicators, as well as macroeconomic fundamentals, are also important determinants of spreads.IMF Working Papers; Working Paper ;No. 2006/016Fiscal policyEconometric modelsCapital marketCurrent spendingimfDebt ManagementimfDebtimfDeflationimfEconomic & financial crises & disastersimfExpenditureimfExpenditures, PublicimfFinancial CrisesimfFinancial crisesimfFinancial Risk ManagementimfFiscal consolidationimfFiscal Policies and Behavior of Economic Agents: OtherimfFiscal PolicyimfFiscal policyimfInflationimfInternational Financial MarketsimfMacroeconomicsimfNational Government Expenditures and Related Policies: GeneralimfPrice LevelimfPricesimfPublic finance & taxationimfPublic FinanceimfSovereign DebtimfUnited StatesimfFiscal policyEconometric models.Capital market.Current spendingDebt ManagementDebtDeflationEconomic & financial crises & disastersExpenditureExpenditures, PublicFinancial CrisesFinancial crisesFinancial Risk ManagementFiscal consolidationFiscal Policies and Behavior of Economic Agents: OtherFiscal PolicyFiscal policyInflationInternational Financial MarketsMacroeconomicsNational Government Expenditures and Related Policies: GeneralPrice LevelPricesPublic finance & taxationPublic FinanceSovereign DebtAkitoby Bernardin1799874Stratmann Thomas1815789DcWaIMFBOOK9910954670403321Fiscal Policy and Financial Markets4371307UNINA