Fiscal Deficits and Current Account Deficits:
The effectiveness of recent fiscal stimulus packages significantly depends on the assumption of non-Ricardian savings behavior. We show that, under the same assumption, fiscal deficits can have worrisome implications if they turn out to be permanent. First, if they occur in large countries they sign...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2009
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Schriftenreihe: | IMF Working Papers
Working Paper No. 09/237 |
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 effectiveness of recent fiscal stimulus packages significantly depends on the assumption of non-Ricardian savings behavior. We show that, under the same assumption, fiscal deficits can have worrisome implications if they turn out to be permanent. First, if they occur in large countries they significantly raise the world real interest rate. Second, they cause a short run current account deterioration equal to around 50 percent of the fiscal deficit deterioration. Third, the longer run current account deterioration equals almost 75 percent for a large economy such as the United States, and almost 100 percent for a small open economy |
Beschreibung: | 1 Online-Ressource (35 p) |
ISBN: | 1451873840 9781451873849 |
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spelling | Kumhof, Michael Verfasser aut Fiscal Deficits and Current Account Deficits Kumhof, Michael Washington, D.C International Monetary Fund 2009 1 Online-Ressource (35 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 09/237 The effectiveness of recent fiscal stimulus packages significantly depends on the assumption of non-Ricardian savings behavior. We show that, under the same assumption, fiscal deficits can have worrisome implications if they turn out to be permanent. First, if they occur in large countries they significantly raise the world real interest rate. Second, they cause a short run current account deterioration equal to around 50 percent of the fiscal deficit deterioration. Third, the longer run current account deterioration equals almost 75 percent for a large economy such as the United States, and almost 100 percent for a small open economy Online-Ausg Laxton, Douglas Sonstige oth http://elibrary.imf.org/view/IMF001/10527-9781451873849/10527-9781451873849/10527-9781451873849.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Kumhof, Michael Fiscal Deficits and Current Account Deficits |
title | Fiscal Deficits and Current Account Deficits |
title_auth | Fiscal Deficits and Current Account Deficits |
title_exact_search | Fiscal Deficits and Current Account Deficits |
title_exact_search_txtP | Fiscal Deficits and Current Account Deficits |
title_full | Fiscal Deficits and Current Account Deficits Kumhof, Michael |
title_fullStr | Fiscal Deficits and Current Account Deficits Kumhof, Michael |
title_full_unstemmed | Fiscal Deficits and Current Account Deficits Kumhof, Michael |
title_short | Fiscal Deficits and Current Account Deficits |
title_sort | fiscal deficits and current account deficits |
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