Fiscal and Monetary Nexus in Emerging Market Economies How Does Debt Matter?

Author/creator Vasishtha, Garima Author
Other author Baig, Taimur Author
Other author Kumar, Manmohan S. Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description75 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation This paper examines two main aspects of the interaction between fiscal and monetary policy in emerging market economies. First, it explores the interest rate-inflation relationship in economies with different levels of external and domestic public debt using panel- and crosssection data. the results show that interest rate-inflation elasticity weakens with debt/GDP and external debt/GDP. Second, it utilizes high-frequency data from Brazil, Turkey, and Poland to examine how market-determined variables react to economic news. the results suggest that when vulnerabilities are high, budget news has the most significant impact on country spreads and interest rates, and the impact of monetary policy is weakened.
Access restrictionAvailable only to authorized users.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781451989052
ISBN1451989059 (E-Book) Active Record
Stock number00013468

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