LEADER 04695oam 22012254 450 001 9910954670403321 005 20250426110035.0 010 $a9786613830715 010 $a9781462315512 010 $a1462315518 010 $a9781452766300 010 $a1452766304 010 $a9781283518260 010 $a1283518260 010 $a9781451908121 010 $a1451908121 035 $a(CKB)3360000000443995 035 $a(EBL)3014418 035 $a(SSID)ssj0000940827 035 $a(PQKBManifestationID)11547858 035 $a(PQKBTitleCode)TC0000940827 035 $a(PQKBWorkID)10955896 035 $a(PQKB)10329692 035 $a(OCoLC)712989267 035 $a(IMF)WPIEE2006016 035 $a(MiAaPQ)EBC3014418 035 $a(IMF)WPIEA2006016 035 $aWPIEA2006016 035 $a(EXLCZ)993360000000443995 100 $a20020129d2006 uf 0 101 0 $aeng 135 $aurcnu|||||||| 181 $ctxt 182 $cc 183 $acr 200 10$aFiscal Policy and Financial Markets /$fBernardin Akitoby, Thomas Stratmann 205 $a1st ed. 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2006. 215 $a1 online resource (26 p.) 225 1 $aIMF Working Papers 300 $a"January 2006." 311 08$a9781451862768 311 08$a1451862768 320 $aIncludes bibliographical references. 327 $a""Contents""; ""I. INTRODUCTION""; ""II. PREVIOUS LITERATURE""; ""III. ANALYTICAL FRAMEWORK""; ""IV. CONCLUSIONS AND POLICY IMPLICATIONS""; ""REFERENCES"" 330 3 $aThis paper introduces fiscal policy in a model of sovereign risk spreads ("spreads"). Using panel data from emerging market countries, we find that reductions in public expenditure are a more powerful tool for reducing spreads than increases in revenues. Specifically, cuts in current spending lower spreads by more than cuts in investment spending, and they also lower spreads by more than increases in revenue. We also show that debt-financed current spending increases sovereign risk by more than tax-financed current spending, suggesting that international investors have some preference for the latter. In line with the empirical literature on the determinants of spreads, we find that liquidity and solvency indicators, as well as macroeconomic fundamentals, are also important determinants of spreads. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2006/016 606 $aFiscal policy$xEconometric models 606 $aCapital market 606 $aCurrent spending$2imf 606 $aDebt Management$2imf 606 $aDebt$2imf 606 $aDeflation$2imf 606 $aEconomic & financial crises & disasters$2imf 606 $aExpenditure$2imf 606 $aExpenditures, Public$2imf 606 $aFinancial Crises$2imf 606 $aFinancial crises$2imf 606 $aFinancial Risk Management$2imf 606 $aFiscal consolidation$2imf 606 $aFiscal Policies and Behavior of Economic Agents: Other$2imf 606 $aFiscal Policy$2imf 606 $aFiscal policy$2imf 606 $aInflation$2imf 606 $aInternational Financial Markets$2imf 606 $aMacroeconomics$2imf 606 $aNational Government Expenditures and Related Policies: General$2imf 606 $aPrice Level$2imf 606 $aPrices$2imf 606 $aPublic finance & taxation$2imf 606 $aPublic Finance$2imf 606 $aSovereign Debt$2imf 607 $aUnited States$2imf 615 0$aFiscal policy$xEconometric models. 615 0$aCapital market. 615 7$aCurrent spending 615 7$aDebt Management 615 7$aDebt 615 7$aDeflation 615 7$aEconomic & financial crises & disasters 615 7$aExpenditure 615 7$aExpenditures, Public 615 7$aFinancial Crises 615 7$aFinancial crises 615 7$aFinancial Risk Management 615 7$aFiscal consolidation 615 7$aFiscal Policies and Behavior of Economic Agents: Other 615 7$aFiscal Policy 615 7$aFiscal policy 615 7$aInflation 615 7$aInternational Financial Markets 615 7$aMacroeconomics 615 7$aNational Government Expenditures and Related Policies: General 615 7$aPrice Level 615 7$aPrices 615 7$aPublic finance & taxation 615 7$aPublic Finance 615 7$aSovereign Debt 700 $aAkitoby$b Bernardin$01799874 701 $aStratmann$b Thomas$01815789 801 0$bDcWaIMF 906 $aBOOK 912 $a9910954670403321 996 $aFiscal Policy and Financial Markets$94371307 997 $aUNINA