TY - BOOK ID - 84540311 TI - International evidence on fiscal solvency : is fiscal policy "responsible"? AU - Mendoza, Enrique G. AU - Ostry, Jonathan David AU - International Monetary Fund. PY - 2007 SN - 146237803X 1452719853 1283518430 1451910738 9786613830883 1451866208 PB - Washington, D.C. : International Monetary Fund, Research Dept., DB - UniCat KW - Finance: General KW - Macroeconomics KW - Public Finance KW - Fiscal Policy KW - Debt KW - Debt Management KW - Sovereign Debt KW - Bankruptcy KW - Liquidation KW - National Government Expenditures and Related Policies: General KW - Public finance & taxation KW - Finance KW - Fiscal stance KW - Public debt KW - Solvency KW - Fiscal policy KW - Expenditure KW - Financial sector policy and analysis KW - Debts, Public KW - Expenditures, Public KW - United States KW - Finance, Public KW - Econometric models. UR - https://www.unicat.be/uniCat?func=search&query=sysid:84540311 AB - This paper looks at fiscal solvency and public debt sustainability in both emerging market and advanced countries. Evidence of fiscal solvency, in the form of a robust positive conditional relationship between public debt and the primary fiscal balance, is established in both groups of countries. Evidence of fiscal solvency is much weaker, however, at high debt levels. These findings suggest that many industrial and emerging market economies, including several where fiscal solvency has been the subject of recent debates, appear to conduct fiscal policy responsibly. Yet our results cannot reject the hypothesis of fiscal insolvency in groups of countries with high debt ratios. ER -