Fiscal Policy

  1. Fiscal Policy in a Global Context
    1. Open Economy Considerations
      1. Capital Flows
        1. International Investment
          1. Portfolio Effects
          2. Impact on Exchange Rates
            1. Fiscal Expansion Effects
              1. Currency Appreciation
              2. Influence on Trade Balances
                1. Import Effects
                  1. Export Competitiveness
                    1. Twin Deficits Hypothesis
                    2. Fiscal Policy Spillovers
                      1. Cross-Border Effects
                        1. Trade Linkages
                      2. International Policy Coordination
                        1. Need for Coordination
                          1. Global Economic Integration
                            1. Spillover Effects
                            2. Examples of Coordination
                              1. G7 Coordination
                                1. European Union Policies
                                2. Challenges to Coordination
                                  1. National Sovereignty
                                    1. Different Economic Conditions
                                    2. International Organizations
                                      1. IMF Role
                                        1. World Bank Programs
                                      2. Constraints from Global Financial Markets
                                        1. Investor Confidence
                                          1. Credit Ratings
                                            1. Market Sentiment
                                            2. Sovereign Risk
                                              1. Default Probability
                                                1. Risk Premiums
                                                2. Rating Agencies and Borrowing Costs
                                                  1. Credit Rating Process
                                                    1. Market Impact
                                                  2. Fiscal Rules and Institutions
                                                    1. European Stability and Growth Pact
                                                      1. Fiscal Responsibility Laws
                                                        1. Independent Fiscal Institutions

                                                      Previous

                                                      8. Government Budgets, Deficits, and Debt

                                                      Go to top

                                                      Next

                                                      10. Coordination of Fiscal and Monetary Policy