Fiscal insurance: a new tool of fiscal stability

Luis de la Plaza

Chapter 15 in The Sustainability of Asia’s Debt, 2022, pp 389-408 from Edward Elgar Publishing

Abstract: Exogenous shocks can have an extremely negative impact on the fiscal balances of both developed and developing economies. Emerging and developing economies have been the least equipped to prepare for and deal with the aftermath of exogenous shocks, often damaging their financial sustainability. These economies are encouraged to take a renewed look at their risk management practices and address their vulnerability to exogenous shocks with a more targeted approach of "fiscal insurance," aimed at transferring to the market a specific layer of risk. A series of obstacles are contributing to these economies' insufficient uptake of products routinely utilized by advanced countries. In this light, there is rekindled pressure for multilateral development banks to correct this "market failure" and, potentially, create a specialized agency to encourage a broader use of fiscal risk management tools.

Keywords: Asian Studies; Development Studies; Economics and Finance (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/edcoll/9781800883710/9781800883710.00026.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

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:elg:eechap:20587_15

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().