Fiscal Reaction Functions in the CFA Zone: An Analytical Perspective
The stance of fiscal policy in CEMAC and WAEMU is strongly influenced by fiscal effort in the previous period. This persistence underscores the risks of a procyclical fiscal policy stance, given these countries'' high degree of dependence on primary commodities and exposure to terms of tra...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2007
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Schriftenreihe: | IMF Working Papers
Working Paper No. 07/232 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | The stance of fiscal policy in CEMAC and WAEMU is strongly influenced by fiscal effort in the previous period. This persistence underscores the risks of a procyclical fiscal policy stance, given these countries'' high degree of dependence on primary commodities and exposure to terms of trade shocks. This paper finds that the coefficient of the lagged debt stock was significant and positive, consistent with the theory that higher levels of debt warrant greater fiscal effort. Various measures of economic performance, as captured by economic growth and per capita GDP, openness, and the terms of trade were also found to be important factors in explaining fiscal performance. As fiscal performance seems to be strongly affected by both real GDP growth and terms of trade fluctuations, there appears to be a need to develop supplementary fiscal-related criteria that take into account the influence of output and the terms of trade |
Beschreibung: | 1 Online-Ressource (19 p) |
ISBN: | 1451867964 9781451867961 |
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spelling | Williams, Oral Verfasser aut Fiscal Reaction Functions in the CFA Zone An Analytical Perspective Williams, Oral Washington, D.C International Monetary Fund 2007 1 Online-Ressource (19 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 07/232 The stance of fiscal policy in CEMAC and WAEMU is strongly influenced by fiscal effort in the previous period. This persistence underscores the risks of a procyclical fiscal policy stance, given these countries'' high degree of dependence on primary commodities and exposure to terms of trade shocks. This paper finds that the coefficient of the lagged debt stock was significant and positive, consistent with the theory that higher levels of debt warrant greater fiscal effort. Various measures of economic performance, as captured by economic growth and per capita GDP, openness, and the terms of trade were also found to be important factors in explaining fiscal performance. As fiscal performance seems to be strongly affected by both real GDP growth and terms of trade fluctuations, there appears to be a need to develop supplementary fiscal-related criteria that take into account the influence of output and the terms of trade Online-Ausg Adedeji, Olumuyiwa Sonstige oth http://elibrary.imf.org/view/IMF001/08766-9781451867961/08766-9781451867961/08766-9781451867961.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Williams, Oral Fiscal Reaction Functions in the CFA Zone An Analytical Perspective |
title | Fiscal Reaction Functions in the CFA Zone An Analytical Perspective |
title_auth | Fiscal Reaction Functions in the CFA Zone An Analytical Perspective |
title_exact_search | Fiscal Reaction Functions in the CFA Zone An Analytical Perspective |
title_exact_search_txtP | Fiscal Reaction Functions in the CFA Zone An Analytical Perspective |
title_full | Fiscal Reaction Functions in the CFA Zone An Analytical Perspective Williams, Oral |
title_fullStr | Fiscal Reaction Functions in the CFA Zone An Analytical Perspective Williams, Oral |
title_full_unstemmed | Fiscal Reaction Functions in the CFA Zone An Analytical Perspective Williams, Oral |
title_short | Fiscal Reaction Functions in the CFA Zone |
title_sort | fiscal reaction functions in the cfa zone an analytical perspective |
title_sub | An Analytical Perspective |
url | http://elibrary.imf.org/view/IMF001/08766-9781451867961/08766-9781451867961/08766-9781451867961.xml |
work_keys_str_mv | AT williamsoral fiscalreactionfunctionsinthecfazoneananalyticalperspective AT adedejiolumuyiwa fiscalreactionfunctionsinthecfazoneananalyticalperspective |