Fiscal Space: Concept, Measurement, and Policy Implications

4 Pages Posted: 29 Nov 2018

See all articles by Ayhan Kose

Ayhan Kose

International Monetary Fund (IMF)

Franziska Ohnsorge

World Bank

Naotaka Sugawara

World Bank

Date Written: November 1, 2018

Abstract

Effective fiscal policy depends on the amount of budget resources available to raise spending or lower taxes without jeopardizing fiscal sustainability. This resource availability is often called fiscal space. Since the global financial crisis, fiscal space in emerging market and developingeconomies has narrowed. This makes these economies more vulnerable to sudden spikes in financing costs and limits their ability to counteract adverse shocks.

Keywords: Public Sector Economics, Public Finance Decentralization and Poverty Reduction, Economic Adjustment and Lending, Macro-Fiscal Policy, Macroeconomics and Economic Growth, Economic Policy, Institutions and Governance, Fiscal & Monetary Policy, Labor Markets

Suggested Citation

Kose, Ayhan and Ohnsorge, Franziska and Sugawara, Naotaka, Fiscal Space: Concept, Measurement, and Policy Implications (November 1, 2018). World Bank Research & Policy Briefs Paper No. 132195. Available at SSRN: https://ssrn.com/abstract=3291569

Ayhan Kose (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Franziska Ohnsorge

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Naotaka Sugawara

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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