Fiscal stimulus for debt intolerant countries?

Reinhart, Carmen and Reinhart, Vincent (2009): Fiscal stimulus for debt intolerant countries? Unpublished.

Abstract

Fashions are hard to resist, and it is now fashionable in much of the North to rely on a fiscal engine of growth. As for emerging markets, however, boosting spending at a time in which revenues are contracting or, in many cases, collapsing for an uncertain period of time is an more complicated matter. Policymakers would do well to keep four risks in mind. Fiscal multipliers: North and South; Emerging markets and global crowding out; Domestic debt is no panacea; and Above all--remember debt intolerance!

• Item Type: MPRA Paper
• Language: English
• Keywords: fiscal stimulus, debt, financial crises, procyclical policies
• Subjects: F - International Economics > F0 - General > F00 - General; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E50 - General; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook > E60 - General

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