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Public Sector Balance Sheet Strength and the Macro Economy / Seyed Reza Yousefi.

Author/Creator:
Yousefi, Seyed Reza.
Publication:
Washington, D.C. : International Monetary Fund, 2019.
Format/Description:
Government document
Book
1 online resource (27 pages)
Series:
IMF eLibrary
IMF Working Papers; Working Paper ; No. 2019/170
IMF Working Papers
Status/Location:
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Summary:
This paper introduces concepts of public sector balance sheet (PSBS) strength, taking into account different aspects of what governments own in addition to what they owe. It develops measures of PSBS strength and investigates their macroeconomic implications. Empirical estimations show that in their pricing of sovereign bonds, financial markets account for government assets and net worth in addition to their liabilities. Furthermore, economies with stronger public sector balance sheets experience shallower recessions and recover faster in the aftermath of economic downturns. This faster return to growth can be explained by the greater space for countercyclical fiscal policy in countries with stronger balance sheets.
Notes:
Part of the IMF eLibrary collection.
Description based on print version record.
Other format:
Print Version: Yousefi, Seyed Reza Public Sector Balance Sheet Strength and the Macro Economy
ISBN:
1513508954 :
9781513508955
ISSN:
1018-5941
Publisher Number:
10.5089/9781513508955.001 doi
Access Restriction:
Restricted for use by site license.