This paper studies the effects of fiscal policy response in 118 episodes of systemic banking crisis in advanced and emerging market countries during 1980-2008. It finds that timely countercyclical fiscal measures contribute to shortening the length of crisis episodes by stimulating aggregate...

Intro -- Contents -- I. INTRODUCTION -- II. KEY FEATURES OF THE GLOBAL FISCAL MODEL -- III. CALIBRATING THE MODEL -- IV. THE MACROECONOMIC EFFECTS OF GOVERNMENT DEBT -- V. GOVERNMENT SPENDING SHOCKS AND PRIVATE CONSUMPTION -- VI. TAX DISTORTIONS AND THE BENEFITS OF TAX REFORM -- VII. THE EFFECTS...

Intro -- Contents -- I. INTRODUCTION -- II. DEBT-STABILIZING PRIMARY SURPLUS -- III. CONSTANT OIL PRICE BALANCE -- IV. NON-OIL FISCAL BALANCE -- V. FISCAL STANCE AND IMPULSE -- VI. HOW THE "UNEXPECTED OIL WINDFALLS" WERE USED -- VII. CONCLUSIONS -- References.