Financial Globalization and Fiscal Perfomance in Emerging Markets

David Hauner and Manmohan Kumar

No 2005/212, IMF Working Papers from International Monetary Fund

Abstract: In recent years financial globalization and benign global market conditions have helped emerging markets in their external financing and budgetary positions. This paper examines three related issues: (i) the importance of the impact of the benign financial environment on fiscal performance; (ii) the likely fiscal impact of a reversal in this environment; and (iii) the potential contribution of fiscal reforms to maintaining favorable market access. The results suggest that the benefits from the benign environment have been substantial and that the potential reversal of the favorable external conditions underlines the need for further fiscal reforms.

Keywords: WP; asset; financial market; U.S. dollar; Emerging markets; fiscal performance; global imbalances; interest rate spreads; debt service; interest rate effect; a number of emerging markets; downside GDP growth scenario; U.S. Dollar depreciation; models emerging market; debt stock; emerging market currency; Emerging and frontier financial markets; Debt service; Exchange rates; Global; Asia and Pacific; Middle East; Europe; Africa (search for similar items in EconPapers)
Pages: 30
Date: 2005-11-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=18647 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2005/212

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().