Edited by Mario I. Blejer and Ke-young Chu, this book investigates linkages among components of the public sector, as well as between macro and micro aspects of fiscal policy, in developing countries. It presents 13 papers prepared by economists of the IMF's Fiscal Affairs Department

This paper discusses the interrelationships between fiscal deficits and public debt. It analyzes the sources of growth of domestic and foreign public debt, and deals with the fiscal policy constraints imposed by a high level of indebtedness. It also discusses the macro-economic effects of public...