Fiscal Policy and Macroeconomic Uncertainty in Developing Countries: The Tale of the Tormented Insurer
---- Acknowledgements -----
We are grateful to Guillermo Calvo, Gita Gopinath, Alejandro Izquierdo, and Nouriel Rubini for their helpful comments. We have also benefited from comments by participants at the 2006 AEA Annual Meetings, the Summer 2006 IFM Meeting at the NBER, the Summer 2006 Meetings of the Econometric Society, and by seminar participants at Iowa State University and the IMF. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.