Across a sample of 34 emerging countries, the evidence shows the frequent existence of a pro-cyclical fiscal impulse. However, the scope for counter-cyclical policy increases with the availability of international reserves, as it enhances credibility and mitigates concerns about the effect of...

Inflationary pressures that had heightened in the oil-rich Gulf Cooperation Council (GCC) since 2003 have moderated in recent times. This paper studies the determinants of inflation in GCC, using an empirical model that includes domestic and external factors. Inflation in major trading partners...