Fiscal Policy Redux (Canuto)

Fiscal Policy Redux by Otaviano Canuto published by Cfi.co (5/2013). “As part of their response to negative shocks coming from advanced economies after the Lehman Brothers’ collapse in 2008, most developing countries resorted to countercyclical fiscal policy. Such a policy choice was available to many developing economies that entered the global economic crisis in good macroeconomic and financial shape, with smaller fiscal and current-account deficits, lower inflation, higher international reserves, lower public and external debt, and less financial vulnerability than in the past.”