Is Fiscal Policy the Answer?
A Developing Country Perspective
The recent global economic crisis reignited interest in counter-cyclical fiscal policy as an instrument to provide immediate economic stimulus. But policy makers are also increasingly interested in how fiscal policy will impact growth and social welfare over a longer-run horizon, knowing that any quick responses to exogenous shocks also affect income generation and distribution. Those effects are less well known, however, and their dynamics still represent a challenge for many countries.
See video clips of
- Otaviano Canuto, PREM Vice President
- Milan Brahmbhatt, PREM Senior Advisor
- Matt Andrews, Associate Professor of Public Policy, Harvard Kennedy School
- Johannes Linn, Resident Senior Scholar at the Emerging Markets Forum, Non-resident Senior Fellow at the Brookings
- Shanta Devarajan, Africa Chief Economist
- Blanca Moreno-Dodson, CICTI Lead Economist
as they present an analysis of some of the trade offs and fiscal policy choices that developing countries face, in light of the recent global economic crisis.