Fiscal Policy Management in an Open Capital Regime »
Journal Issue
Volume/Issue: 1997/20
Series: IMF Working Papers
Author(s): Peter Heller
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 February 1997
DOI: http://dx.doi.org/10.5089/9781451922158.001
ISBN: 9781451922158
Keywords: globalization, capital flows, capital inflows, fiscal position, fiscal stance
This paper argues that as countries open their capital regimes, the appropriate fiscal stance should become more conservative than when capital is immobile. Further fiscal adjustment may be necessary in the face of...