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Macroeconomics of Fiscal Policy in Developing Countries

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  • Raghbendra Jha

Abstract

This paper considers some aspects of the effects of fiscal policy on macroeconomic adjustment in developing countries. First, the paper reviews the notion of the fiscal deficit in the particular context of developing countries. It then spells out the conditions under which the internal and external debts are sustainable and points out the role of the “twin deficits”. The paper then presents some evidence on the sustainability of the internal and external deficits in the context of some developing countries.

Suggested Citation

  • Raghbendra Jha, 2001. "Macroeconomics of Fiscal Policy in Developing Countries," WIDER Working Paper Series DP2001-71, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2001-71
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    Cited by:

    1. Raghbendra Jha, 2002. "Rural Poverty in India: Structure, determinants and suggestions for policy reform," ASARC Working Papers 2002-07, The Australian National University, Australia South Asia Research Centre.
    2. Mwankemwa, Lusajo P. & Luvanda, Eliab, . "Fiscal Deficit and its Threshold Effects on Inflation in Tanzania," African Journal of Economic Review, African Journal of Economic Review, vol. 10(01).
    3. Raghbendra Jha, 2002. "The downward rigidity of Indian interest rates," ASARC Working Papers 2002-01, The Australian National University, Australia South Asia Research Centre.
    4. Raghbendra Jha, 2004. "Innovative Sources of Development Finance: Global Cooperation in the Twenty‐first Century," The World Economy, Wiley Blackwell, vol. 27(2), pages 193-214, February.
    5. Hemantha K.J. Ekanayake, 2012. "The Link Between Fiscal Deficit and Inflation: Do public sector wages matter?," ASARC Working Papers 2012-14, The Australian National University, Australia South Asia Research Centre.
    6. Тұрабай Бердібек // Turabai Berdibek & Ускенбаев Азат // Uskenbayev Azat & Муратов Жасулан // Muratov Zhassulan & Алмагамбетова Меруерт // Almagambetova Meruyert & Оспанов Нурлан // Ospanov Nurlan, 2023. "Влияние государственных расходов на текущий счет платежного баланса Казахстана через канал импорта товаров // The impact of the government expenditures on the current account of the balance of payments of Kazakhstan through the channel of import of g," Working Papers #2023-5, National Bank of Kazakhstan.
    7. Pablo Mendieta Ossio & Hugo Rodriguez Gonzales, 2005. "Interacción de la política fiscal con la política monetaria en el MERCOSUR y países asociados," Revista de Análisis del BCB, Banco Central de Bolivia, vol. 8(1), pages 49-97, December.
    8. Raghbendra Jha, 2001. "The Challenge of Fiscal Reform in India," ASARC Working Papers 2001-11, The Australian National University, Australia South Asia Research Centre.

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