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The Impact of Inflation on Budgetary Discipline
Aizenman, Joshua - 1995
allows a minister, whose realized real budget falls short of a threshold, to ask for a treasury, the minister obtains the … extra funds needed to meet the expenditure threshold level. The contract sets both the projected budget and the threshold … real expenditure that justifies budget revisions. We identify the efficient contract and show that for significant state …
Persistent link: https://www.econbiz.de/10012473531
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Soft Budget Constraints, Taxes, and the Incentive to Cooperate
Aizenman, Joshua - 1990
. Limited monitoring enables each decision maker to behave opportunistically in the short run, abusing his 'official' budget … constraint, generating in the short run a degree of 'softness' in his budget. The uncertainty has two dimensions: the temporal …
Persistent link: https://www.econbiz.de/10012475485
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Fiscal Challenges in Multilayered Unions : An Overview and Case Study
Aizenman, Joshua - 2014
This paper reviews recent research dealing with fiscal discipline and revisit the issues of fiscal control in federal systems, focusing on selective case studies covering the 2000s, before and after the Global Financial Crisis (GFC). We start by contrasting the recent fiscal history of...
Persistent link: https://www.econbiz.de/10012458101
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International Spillovers of U.S. Fiscal Challenges
Aizenman, Joshua; Eldén, William; Jinjarak, Yothin; … - National Bureau of Economic Research - 2024
Expansionary fiscal policies have increased significantly following the subprime crisis in 2007 and the COVID-19 crisis, leading to fiscal dominance concerns, where a growing share of monetary authorities may be forced to deviate from policy targets to accommodate fiscal policies. Meanwhile,...
Persistent link: https://www.econbiz.de/10015056195
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Savings and the Terms of Trade Under Borrowing Constraints
Agenor, Pierre-Richard - 2000
This paper examines the extent to which permanent terms-of-trade shocks have an asymmetric effect on private savings. The first part uses a simple three-period model to show that, if households expect to face binding borrowing constraints in bad states of nature, savings rates will respond...
Persistent link: https://www.econbiz.de/10012471007
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Exchange Rate Regimes and Financial-Market Imperfections
Aizenman, Joshua - 2000
This paper investigates the design of an exchange rate policy for an economy where the domestic capital market is segmented from the global financial market, producers rely on credit to finance working capital needs, and the labor market is characterized by nominal contracts. We show that the...
Persistent link: https://www.econbiz.de/10012471012
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Financial Sector Inefficiencies and Coordinate Failures : Implications for Crisis Management
Agenor, Pierre-Richard - 1999
This paper analyzes the implication of inefficient financial intermediation for crisis management in a country where firms are highly-indebted. The analysis is based on a model in which firms rely on bank credit to finance their working capital needs and lenders face high state verification and...
Persistent link: https://www.econbiz.de/10012471337
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Capital Controls and Financial Crises
Aizenman, Joshua - 1999
The purpose of this paper is to explain the reluctance of developing countries to open up their capital market to foreigners, and the conditions inducing an emerging market economy to switch its policies. We consider an economy characterized initially by a one-sided openness to the capital...
Persistent link: https://www.econbiz.de/10012471387
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Uncertainty and the Disappearance of International Credit
Aizenman, Joshua - 1999
We show that increased uncertainty about the size of an emerging market's external debt has a nonlinear and potentially large adverse effect on the supply of international credit offered to them. We also show that if international creditors are first- order risk averse, attaching greater weight...
Persistent link: https://www.econbiz.de/10012471396
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Reserve Uncertainty and the Supply of International Credit
Aizenman, Joshua - 1999
This paper examines how increased uncertainty about an emerging market's international reserves affects the willingness of foreign investors to supply international credits. We illustrate the relevance of this concern for South Korea during the recent financial crisis. Using available...
Persistent link: https://www.econbiz.de/10012471586