This paper studies the effect of external shocks on fiscal policy in the developing economies. Following a survey of recent experiences regarding fiscal responses to external shocks the paper offers a basic analytical framework to analyze the issue. The c

The authors analyze the structure of public deficits in Chile, distinguishing between consolidated nonfinancial public deficits and quasifiscal losses of the Central Bank - focusing on the determinants and sustainability of the deficits. In the framework of an estimated portfolio model, they...

The purpose of this paper is to derive a framework for quantifying the contribution of the most important economic and policy variables to the public sector deficit. The method involves behavioral relations, identities for some key macroeconomic and sector variables and an accounting breakdown...

This article attempts to explain the high and persistent inflation in Brazil in the first half of the 80's by appealing to two sources: an autonomous one, brought by widespread indexation practices (inertia), and a more Keynesian source based on (expected