Series: IMF Working Papers
Author(s): Bernardin Akitoby , and Thomas Stratmann
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 January 2006
Keywords: spreads, bond, bonds, fiscal adjustment, fiscal adjustments, Fiscal Policies and Behavior of Economic Agents: Other,
This paper introduces fiscal policy in a model of sovereign risk spreads ("spreads"). Using panel data from emerging market countries, we find that reductions in public expenditure are a more powerful tool for redu...