Reassessing Fiscal Policy
Perspectives from Developing Countries
Bibliographic Data
| ID | 4902849 |
|---|---|
| Authors | Leonardo Vera (0000-0002-5390-6397, Central Bank of Venezuela, corresponding author) |
| Year | 2009 |
| Volume | 40 |
| Issue | 4 |
| Pages | 611-643 |
| Publication date | 2009-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Development and Change (JOURNAL) |
| Journal identifiers | ISSN: 0012-155X • E-ISSN: 1467-7660 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1467-7660.2009.01565.x |
| OpenAlex | W2016403508 |
| Language | EN |
| Citations received | 2 |
| References cited | 55 |
Over the last twenty-five years an anti-Keynesian orthodox approach has envisaged a prominent role for reductions in fiscal deficits in developing countries. Expansionary fiscal policies have been said to result in excessive expansion of aggregate demand leading to current account deficits and inflation, as well as displacing private investment, thereby inhibiting output stabilization and employment recovery. Moreover, chronic fiscal deficits are supposed to be associated with high and explosive debt/GDP ratios. The purpose of this article is to assess the theoretical adequacy of the orthodox approach in the context of developing countries. The author clarifies some common misunderstandings and finds that none of the conventional arguments against fiscal activism is wholly convincing. At the heart of the debate lies the question of assumptions, economic structure and causation mechanisms. The orthodox stories regarding the macroeconomic effects of fiscal policy very often do not go beyond the simple monetarist assumptions or seek to verify the implications against the existing experiences and empirical data from developing countries
Aggregate demand · Causation · Context (archaeology) · Current account · Debt · Developing country · Economic growth · Economics · Exchange rate · Fiscal policy · Fiscal union · Inflation (cosmology) · Investment (military) · Keynesian economics · Macroeconomics · Monetarism · Monetary economics · Monetary policy · Political science · Politics · Economic Theory and Policy · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth
Capital Mobility and Stabilization Policy Under Fixed and Flexible Exchange Rates
How Effective is Fiscal Policy in Raising National Saving
Consumption in Developing Countries
External debt, net transfers, and growth in developing countries
A three-gap model of foreign transfers and the GDP growth rate in developing countries
Gap models
Public policies and saving in developing countries
Ricardian equivalence
Deficit finance and monetary dynamics in Brazil and Mexico
An econometric analysis of private-sector investment in Brazil
Managing in the public sector for investment and growth
Saving and investment under external and fiscal constraints
Debt, Deficits, and Finite Horizons
Fiscal policy and economic growth
The Ricardian Approach to Budget Deficits
Macroeconomic Determinants of Domestic Private Investment in Africa
Finance and Economic Growth in Developing Countries
Reassessing Discretionary Fiscal Policy
| Unique citing works | 2 |
|---|---|
| Citations per year | 0,15 |
| Citation span | 2013 - 2015 (3) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |