Publication: How Should Fiscal Policy Be Set Over the Business Cycle?
Date
2000-11
ISSN
Published
2000-11
Author(s)
Talvi, Ernesto
Abstract
Several generations of economists have
analyzed the relationship between fiscal policy and the
business cycle. How is fiscal policy actually conducted over
the business cycle? From a public policy point of view, the
interpretation based on credit market imperfections calls
for ensuring that developing countries retain access to
international credit markets in bad times. At the domestic
level, effective liquidity management and intertemporal
solvency of fiscal accounts have been emphasized for
countries to avoid being cut off from international credit
markets in bad times.
Citation
“Talvi, Ernesto. 2000. How Should Fiscal Policy Be Set Over the Business Cycle?. PREM Notes; No. 47. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/dcc7de56-2fd7-5727-a4d4-ba6309588c67 License: CC BY 3.0 IGO.”