Analysis of Australia’s Fiscal Vulnerability to Crisis

Quantitative Approaches to Fiscal Sustainability Analysis: A Case Study of Turkey since the Crisis

This case study of fiscal sustainability in Turkey after the crisis in 2001 reviews and extends quantitative approaches to fiscal sustainability analysis and brings them together in a user-friendly tool applicable in a data-sparse environment. It combines a dynamic simulations approach with a steady-state consistency approach. It also incorporates user-defined stress tests and stochastic simula...

The Brazilian Crisis: From Inertial Inflation to Fiscal Fragility

2 INTRODUCTION In a previous paper 1 I argued that the financial crisis in Asia was radically different from those that have plagued Latin American since 1982. In simple terms, the Asian crisis was not caused by excessively large fiscal and trade imbalances leading to inflation, speculative pressure on overvalued pegged exchange rates and financial sector collapse characteristic of crises in La...

Fiscal policy, banks and the financial crisis

This paper studies the effectiveness of Euro Area (EA) fiscal policy, during the recent financial crisis, using an estimated New Keynesian model with a bank. A key dimension of policy in the crisis was massive government support for banks—that dimension has so far received little attention in the macroeconomics literature. We use the estimated model to analyze the effects of bank asset losses, ...

Fiscal Crisis Resolution: Taxation versus Inflation

The paper presents a model of fiscal and monetary policy that evaluates the tradeoff be­ tween higher distortionary labor taxation and higher ination in the resolution of fiscal crises. In the model government debt is domestically held and nominal. Data are presented to show that such debt is now at least as important as external government debt in many key emerg­ ing markets, and that it is a...

Crisis-Induced Fiscal Restructuring in Europe