Public sector deficits and macroeconomic performance

W. Easterly, C. A. Rodriguez, K. Schmidt-Hebbel

    Research output: Chapter in Book/Report/Conference proceedingChapter


    Presents the findings of a Bank research project designed to shed light on the complex dynamics of public sector deficits. It includes case studies of eight countries - Argentina, Chile, Colombia, Cote d'Ivoire, Ghana, Morocco, Pakistan, and Zimbabwe, which are analysed within a theoretical framework elaborated for the study and in conjunction with cross-country data from a larger set. The book concludes that the way chosen to finance deficits (money creation, debt, or arrears) go far to explain medium-term financial and macroeconomic imbalances, but in the short term these relations are blurred. The link between inflation and budget deficits is found to be weak, at least for the countries studied. -after Publisher

    Original languageEnglish (US)
    Title of host publicationPublic sector deficits and macroeconomic performance
    PublisherOxford University Press, for World Bank
    ISBN (Print)0195209885, 9780195209884
    StatePublished - 1994

    ASJC Scopus subject areas

    • General Environmental Science
    • General Earth and Planetary Sciences


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