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The Budget Deficit in Transition: A Cautionary Note

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  • Vito Tanzi

    (International Monetary Fund)

Abstract

This paper discusses major fiscal issues faced by the previously centrally planned economies in their transition to market economies. It focuses on the extent to which the budget deficit should guide policy and the interactions between fiscal policy and other aspects of the macroeconomy.

Suggested Citation

  • Vito Tanzi, 1993. "The Budget Deficit in Transition: A Cautionary Note," IMF Staff Papers, Palgrave Macmillan, vol. 40(3), pages 697-707, September.
  • Handle: RePEc:pal:imfstp:v:40:y:1993:i:3:p:697-707
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    References listed on IDEAS

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    1. Leonardo Bartolini & Avinash Dixit, 1991. "Market Valuation of Illiquid Debt and Implications for Conflicts among Creditors," IMF Staff Papers, Palgrave Macmillan, vol. 38(4), pages 828-849, December.
    2. Easterly, William R., 1989. "Fiscal adjustment and deficit financing during the debt crisis," Policy Research Working Paper Series 138, The World Bank.
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    6. Anayiotos, George & de Pinies, Jaime, 1990. "The secondary market and the international debt problem," World Development, Elsevier, vol. 18(12), pages 1655-1669, December.
    7. Ozler, Sule*Huizinga, Harry, 1991. "How factors in creditor countries affect secondary market prices for developing country debt," Policy Research Working Paper Series 622, The World Bank.
    8. Calvo, Guillermo A, 1992. "Are High Interest Rates Effective for Stopping High Inflation? Some Skeptical Notes," World Bank Economic Review, World Bank Group, vol. 6(1), pages 55-69, January.
    9. Sule Ozler & Harry Huizinga, 1992. "Bank Exposure, Capital and Secondary Market Discounts on the Developing Country Debt," NBER Working Papers 3961, National Bureau of Economic Research, Inc.
    10. Barro, Robert J, 1979. "On the Determination of the Public Debt," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 940-971, October.
    11. Jonathan Eaton & Mark Gersovitz & Joseph E. Stiglitz, 1991. "The Pure Theory of Country Risk," NBER Chapters,in: International Volatility and Economic Growth: The First Ten Years of The International Seminar on Macroeconomics, pages 391-435 National Bureau of Economic Research, Inc.
    12. Manmohan S. Kumar & Pablo Emilio Guidotti, 1991. "Domestic Public Debt of Externally Indebted Countries," IMF Occasional Papers 80, International Monetary Fund.
    13. Stone, Mark R., 1991. "Are sovereign debt secondary market returns sensitive to macroeconomic fundamentals? Evidence from the contemporary and interwar markets," Journal of International Money and Finance, Elsevier, vol. 10(1, Supple), pages 100-122, March.
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    Citations

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    Cited by:

    1. Denizer, Cevdet, 1997. "Stabilization, adjustment, and growth prospects in transition economies," Policy Research Working Paper Series 1855, The World Bank.
    2. Schroder, Philipp J. H., 2001. "On the speed and boundaries of structural adjustment when fiscal policy is tight," Economic Systems, Elsevier, vol. 25(4), pages 345-364, December.
    3. M. Caruso, 1995. "The first stage of the transition in the economies of the former USSR: asymmetric shocks, macroeconomic imbalances and seigniorage," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 48(192), pages 85-108.
    4. Pirttilä, Jukka, 2000. "Fiscal policy and structural reforms in transition economies : An empirical analysis," BOFIT Discussion Papers 5/2000, Bank of Finland, Institute for Economies in Transition.
    5. M. Caruso, 1995. "The first stage of the transition in the economies of the former USSR: asymmetric shocks, macroeconomic imbalances and seigniorage," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 48(192), pages 85-108.
    6. Schröder, Philipp J.H., 2000. "On Privatisation and Restructuring," MPRA Paper 89, University Library of Munich, Germany, revised 2006.
    7. Aleh Tsyvinski & Martin Petri & Günther Taube, 2002. "Energy Sector Quasi-Fiscal Activities in the Countries of the Former Soviet Union," IMF Working Papers 02/60, International Monetary Fund.
    8. Csaba, László, 1995. "A nemzetközi pénzügyi szervezetek és a keleteurópai rendszerátalakító politika
      [International financial organizations and the East European policies aimed at systemic transformation]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 117-138.
    9. Petraq Milo, 2012. "The impact of the budget deficit on the currency and inflation in the transition economies," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 1(1), pages 25-57.

    More about this item

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • P2 - Economic Systems - - Socialist Systems and Transition Economies
    • P3 - Economic Systems - - Socialist Institutions and Their Transitions

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