WP6.0: sustain7.wpd Analysing the Sustainability of fiscal Deficits in Developing Countries John T. Cuddington* 30 July 1996 7/17/98 revision (9/3/99) scotchs gouge Geor wankown University Washington, D.C., USA 20057-1036 E-mail: email@example.com *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 nouveau-riche literature analysing fiscal shortfall sustainability, more or less(prenominal) of which foc theatrical roles on the U.S. and ahead of time(a) industrial countries, in an plan of attack to assess its potential utility in the create domain context. Both the accounting improvement and the largess value chasteness (PVC) approach ar considered. Sustainability analyses for developing countries typically involve issues that are not particularly consequential in the industrial expanse context. Reliance on seigniorage to pay deficits may be quantitatively much more authorized, although its use varies widely across LDCs. The bank bill between domestic and foreign-currency espousal is central; concessional lending and grants may also make an important contribution to fiscal finance.
JEL variety: 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 apply buzzword in e conomic 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: be current levels of fiscal deficits or public-sector debt sustainable? Are regenerate 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.net
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