TY  - JOUR
AU  - Buiter,Willem H.
TI  - Some Thoughts on the Role of Fiscal Policy in Stabilisation and Structural Adjustment in Developing Countries
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2603
PY  - 1988
Y2  - May 1988
UR  - http://www.nber.org/papers/w2603
L1  - http://www.nber.org/papers/w2603.pdf
N1  - Author contact info:
Willem H. Buiter
Citigroup Centre
Canada Square, Canary Wharf
London E14 5LB
UNITED KINGDOM
E-Mail: willembuiter@btinternet.com
AB  - The paper analyses the role of fiscal policy in the restoration of internal and external macroeconomic equilibrium and in achieving structural adjustment i.e. major changes in the patterns of sectoral and intertemporal resource allocation. The focus is on developing and new industrial countries in need of both stabilization and structural adjustment. The external transfer problem and the associated internal fiscal and real resource transfer problems are analyzed with special emphasis on possible causes for the breakdown of the internal and external transfer processes. The concepts of national and public sector solvency are used to evaluate the mutual consistency and feasibility of fiscal, financial and monetary plans. Special attention is devoted to the links between the fiscal deficit and inflation and to the inflation tax.
ER  -