This paper presents a model that incorporates uncertainty about trade reform and analyzes the effects of trade and financial liberalization on domestic investment and savings, the current account balance and the real exchange rate, both when the capital account is open and when it is closed....

The paper evaluates the key drivers of fiscal crises in a sample of countries from all three income groups-advanced, emerging, and low-income countries, using fiscal crisis data recently developed by the IMF's Fiscal Affairs Department. The empirical study focuses on three questions: (1) How...

The paper evaluates the key drivers of fiscal crises in a sample of countries from all three income groups—advanced, emerging, and low-income countries, using fiscal crisis data recently developed by the IMF’s Fiscal Affairs Department. The empirical study focuses on three questions: (1) How...