Moreno-Dodson, BlancaMoreno-Dodson, Blanca2013-04-082013-04-082013978-0-8213-9630-810.1596/978-0-8213-9630-6https://hdl.handle.net/10986/13086Fiscal policy is an important instrument for maintaining and improving living standards. Such living standards can be viewed as an outcome of the interaction between the opportunities offered by society and the readiness and ability of each person to exploit them. Under certain circumstances, public finance can make an important contribution to the creation of opportunities within a given society by raising resources from the private sector through taxation or borrowing (domestic and external) and allocating those resources effectively and equitably in the form of public spending, including through public goods and transfers. The first chapters in this volume sketch out a framework that policy makers can use in adopting a more cohesive or integrated approach to the short- and long-term dimensions of fiscal policy. Here the traditional threefold rationale for fiscal policy proposed by Musgrave-stabilization, resource allocation, and distribution-continues to be useful. Other chapters in this volume take up some of the critical institutional challenges in implementing fiscal policy for longer-term growth and development. These chapters also look at the tools and approaches being developed to address these challenges. Improving the quality of public investment management is a particular priority in view of the recent evidence that as little as half of all public investment expenditure translates into productive capital stock. The last chapter in this volume is a case study of fiscal responses to the great recession in low-income Sub-Saharan Africa, looking at stabilization and the longer-run growth, as well as distributional aspects of such responses. The growing depth of domestic financial markets in many African countries rather unexpectedly is turning out to be a critical source of financing for fiscal policy responses.en-USCC BY 3.0 IGOaccountingAccounting Standardsaccrual accountingaggregate demandasset managementautoregressionbalance sheetBenchmarkingbudget constraintBudgetingburden of taxationcapacity constraintscapita incomecapital marketcapital marketscapital stockcapital stockscash transferscentral bankcentral government debtCheckscollective actioncommodity pricescomparative advantageconsumption expenditureCredibilitycredit marketcurrent account deficitsdebt burdensdebt ratiosdebt reliefdebtsDeveloping countriesDeveloping Countrydevelopment assistanceDevelopment BankDevelopment Economicsdevelopment policydevelopment projectsdevelopment strategiesDevelopment StrategyDiscretionary Policydomestic creditdomestic credit expansiondomestic financial marketsEconomic developmenteconomic growthEconomic Outlookeconomic performanceeconomic policiesEconomic ResearchEconomics ResearchEmerging Marketsequity issuesexchange rateExpenditureExpendituresexternal debtexternalitiesfinancesFinancial crisesFinancial Crisisfinancial managementfinancial sectorfiscal adjustmentfiscal changesfiscal decentralizationfiscal deficitfiscal deficitsFiscal MeasuresFiscal PoliciesFiscal Policyfiscal reformfiscal rulesFiscal Stancefiscal stimulusFiscal Sustainabilityflexible exchange rateflexible exchange ratesforecastsforeign borrowingforeign exchangeforeign exchange reservefull employmentFuture ResearchGDPGlobal Economygovernment budgetgovernment budgetsGovernment Debtgovernment expendituregovernment financegovernment finance statisticsGovernment Investmentgovernment policiesgovernment revenuegovernment revenuesgovernment spendinggross domestic productgrowth modelsgrowth rategrowth ratesgrowth theoryholdinghuman capitalhuman developmenthuman resourceincome inequalityinflationinflationary pressureinformation systeminformation systemsInfrastructure Investmentsinstitutional capacityinstrumentinsuranceinsurance marketsinsurance policiesinterest rateinterest ratesInternational BankInternational Developmentinternational economicsinternational interestInternational Monetary Fundinternational reservesinternational tradeintrinsic valueInvestingInvestment Climateinvestment projectsliquidityliving standardliving standardslocal governmentsmacroeconomic contextmacroeconomic environmentmacroeconomic instabilitymacroeconomic policymacroeconomic shocksmacroeconomic stabilitymacroeconomic stabilizationmacroeconomicsmarket economymarket environmentmarket failuresmicrodatamissing marketsmonetary policyMultipliersNational IncomeNational InvestmentNational Treasurynatural capitalnatural resourcesnegative shockopen economiesopen economyper capita incomepolicy credibilitypolicy responsePolicy ResponsesPolitical Economypotential outputprivate capitalprivate investmentprivate sector creditproductivityproductivity growthpublic assetpublic assetsPublic borrowingpublic capitalpublic capital spendingpublic debtPublic EconomicsPublic Expenditurepublic financepublic financespublic goodsPublic Investmentpublic investment spendingPublic InvestmentsPublic SectorPublic Spendingreal GDPRedistributive EffectsReinvestmentrent seekingreturnreturnsrisk averserisk managementSafety Netssavings ratessocial relationsSocial Welfaresolvencysovereign debtStabilization PolicyTaxtax policiesTax Policytotal factor productivityTransparencytreasuriesTreasurytroughunemploymentvalue judgmentswage differentialsWealthWorld Bank10.1596/978-0-8213-9630-8