Using a panel of annual data for 20 countries we show that synchronized fiscal consolidation (stimulus) programmes in different countries make their business cycles more closely linked, especially in the case of fiscal adjustments lasting 2 or 3 years. We also find: (i) little evidence of...

Intro -- Contents -- Foreword -- Contributors -- Acknowledgments -- Fiscal Policy for Economic Development: An Overview -- Fiscal Policy, Expenditure Composition, and Growth in Low-Income Countries -- Persistence of Fiscal Adjustments and Expenditure Composition in Low-Income Countries --...