Search Results - subject:"Reaction function"

A Modern History of Fiscal Prudence and Profligacy

Mauro, Paolo; Romeu, Rafael; Binder, Ariel J; Zaman, Asad - International Monetary Fund (IMF) - 2013

We draw on a newly collected historical dataset of fiscal variables for a large panel of countriesâ€”to our knowledge, the most comprehensive database currently availableâ€”to gauge the degree of fiscal prudence or profligacy for each country over the past several decades....

Persistent link: https://www.econbiz.de/10011142135

Non-Linear Taylor Rule through Threshold Estimation

Bhaduri, Saumitra; Sethudurai, Raja - Volkswirtschaftliche Fakultät, … - 2013

This paper tries to identify non-linearity in the estimation of Taylor type reaction function for Reserve Bank of India … reaction function, the results are in support of the non-linear model in predicting the repo rate at turning points with more …

Persistent link: https://www.econbiz.de/10011113954

Monetary Transmission Mechanism in the East African Community; An Empirical Investigation

Davoodi, Hamid Reza; Dixit, S. V. S.; Pinter, Gabor - International Monetary Fund (IMF) - 2013

Do changes in monetary policy affect inflation and output in the East African Community (EAC)? We find that (i) Monetary Transmission Mechanism (MTM) tends to be generally weak when using standard statistical inferences, but somewhat strong when using non-standard inference methods; (ii) when...

Persistent link: https://www.econbiz.de/10011242179

Fiscal Sustainability, Public Investment, and Growth in Natural Resource-Rich, Low-Income Countries; The Case of Cameroon

Samaké, Issouf; Muthoora, Priscilla S.; Versailles, Bruno - International Monetary Fund (IMF) - 2013

This paper assesses the implications of the use of oil revenue for public investment on growth and fiscal sustainability in Cameroon. We develop a dynamic stochastic general equilibrium model to analyze the effects of such investment on growth and on the path of key fiscal indicators, such as...

Persistent link: https://www.econbiz.de/10011242196

The Monetary Transmission Mechanism in the Tropics; A Narrative Approach

Berg, Andrew; Charry, Luisa; Portillo, Rafael A; Vlcek, Jan - International Monetary Fund (IMF) - 2013

Many central banks in low-income countries in Sub-Saharan Africa are modernising their monetary policy frameworks. Standard statistical procedures have had limited success in identifying the channels of monetary transmission in such countries. Here we take a narrative approach, following Romer...

Persistent link: https://www.econbiz.de/10011242205

That Squeezing Feeling; The Interest Burden and Public Debt Stabilization

Debrun, Xavier; Kinda, Tidiane - International Monetary Fund (IMF) - 2013

The paper explores the extent to which the pressure of debt service on other spending items may push governments to embark on fiscal consolidation beyond what is strictly necessary to secure solvency. The empirical analysis identifies thresholds of interest bill indicators beyond which...

Persistent link: https://www.econbiz.de/10011242207

Fiscal Sustainability; A 21st Century Guide for the Perplexed

Tanner, Evan - International Monetary Fund (IMF) - 2013

This paper critically reviews recent work regarding the sustainability of public debt. It argues that Debt Sustainability Analyses (DSAs) should be more than mere mechanical simulation exercises. Instead, a DSA should be linked to some objective regarding the distribution of fiscal burdens and...

Persistent link: https://www.econbiz.de/10011242337

The Impact of Pre-announced Day-to-day Interventions on the Colombian Exchange Rate

Echavarría, Juan José; Velandia, Luis Fernando Melo; … - BANCO DE LA REPÚBLICA - 2013

effects of day-to-day interventions with discretionary interventions by combining a Tobit-GARCH reaction function with an …

Persistent link: https://www.econbiz.de/10010828154

Interpretation and limits of sustainability tests in public finance

LAMÉ, G.; LEQUIEN, M.; PIONNIER, P.-A. - Département des Études Économiques d'Ensemble (D3E), … - 2013

Public debt is considered sustainable if discounted net repayments are expected to cover the initial debt issuance, i.e. if the government intertemporal budget constraint is expected to hold. With risk averse lenders and an uncertain economic environment, Bohn (1995) stresses that this...

Persistent link: https://www.econbiz.de/10010732232

Estimating India's Fiscal Reaction Function

Nguyen, Truong - Crawford School of Public Policy, Australian National … - 2013

monetary reaction function, this paper models and estimates a fiscal reaction function for India as a part of a macro model for … the theoretical foundations for the empirical estimation. In estimating India's fiscal reaction function, data stationary … the new element in the function and should be important in any borrowing action. The estimated fiscal reaction function …

Persistent link: https://www.econbiz.de/10010762619