|
EconStor >
University of California (UC) >
UC Santa Cruz, Santa Cruz Institute for International Economics (SCIIE) >
Working Papers, Santa Cruz Institute for International Economics, UC Santa Cruz >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/64056
|
| | |
| Title: | | Fiscal and monetary policies and the cost of sudden stops  |
| Authors: | | Hutchison, Michael M. Noy, Ilan Wang, Lidan |
| Issue Date: | | 2007 |
| Series/Report no.: | | Working Papers, Santa Cruz Center for International Economics 07-10 |
| Abstract: | | This article investigates the effects of macroeconomic policy (monetary and fiscal) on output growth during financial crises characterized by a sudden stop in net capital inflows in developing and emerging market economies. We investigate 83 sudden stop crises in 77 countries over 1982-2003 using a baseline empirical model to control for the various determinants of output losses during sudden stop crises. Extending the baseline model to account for policies - contractionary as well as expansionary - we measure the marginal effects of policy on output losses. Simple descriptive statistics indicate no apparent correlation between the costs of financial crises and the economic policies pursed at the time. Once controlling for various pre-conditions and other factors, however, we find that monetary and fiscal tightening at the time of a sudden stop crisis significantly worsens output losses. |
| Subjects: | | output losses financial crises sudden stops fiscal policy financial policy |
| JEL: | | E52 E62 F32 F43 O16 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Working Papers, Santa Cruz Institute for International Economics, UC Santa Cruz
|
| Files in This Item:
| |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/64056
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|