The Rewards of Fiscal Consolidation Sovereign Spreads and Confidence Effects is popular PDF and ePub book, written by Mr.Antonio David in 2019-07-02, it is a fantastic choice for those who relish reading online the Business & Economics genre. Let's immerse ourselves in this engaging Business & Economics book by exploring the summary and details provided below. Remember, The Rewards of Fiscal Consolidation Sovereign Spreads and Confidence Effects can be Read Online from any device for your convenience.
The Rewards of Fiscal Consolidation Sovereign Spreads and Confidence Effects Book PDF Summary
This paper investigates the effects of fiscal consolidation announcements on sovereign spreads in a panel of 21 emerging market economies during 2000-18. We construct a novel dataset using a global news database to identify the precise announcement date of fiscal consolidation actions. Our results show that sovereign spreads decline significantly following news that austerity measures have been approved by the legislature (congress or parliament), in periods of high sovereign spreads or in countries under an IMF program. In addition, consolidation announcements are less contractionary when sovereign spreads decline, with the reduction in output being half of the counterfactual case in which spreads do not respond to announcements. These results constitute direct evidence that confidence effects, in the form of lower sovereign spreads, are an important transmission channel of fiscal shocks. We also find that the role of confidence effects increases with the level of spreads such that countries with high spread levels stand to benefit the most from putting in place credible austerity packages.
Detail Book of The Rewards of Fiscal Consolidation Sovereign Spreads and Confidence Effects PDF
- Author : Mr.Antonio David
- Release : 02 July 2019
- Publisher : International Monetary Fund
- ISBN : 9781498317054
- Genre : Business & Economics
- Total Page : 28 pages
- Language : English
- PDF File Size : 13,7 Mb
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