Fiscal Cycles in the Caribbean

July 1, 2009

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Juliana Dutra Araujo. Fiscal Cycles in the Caribbean, (USA: International Monetary Fund, 2009) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The sharp increase in debt in the Caribbean since the mid-1990s has focused attention on the conduct of fiscal policy in the region. This paper aims to diagnose how fiscal policy has behaved during this period by looking at three main cycles of the economy: the business, election, and natural disaster cycles. Our main findings suggest that fiscal policy has been mostly procyclical in the region, while disasters have been heavily "insured" by foreign transfers. The "when it rains, it pours" phenomena suggested by Kaminsky, Reinhart and Vegh (2004) seems to take place in the Caribbean.

Subject: Business cycles, Economic growth, Expenditure, Fiscal policy, Fiscal stance, Revenue administration

Keywords: Business cycles, Capital revenue, Caribbean, ECCU country, ECCU economy, ECCU value, Fiscal accounts, Fiscal stance, Government, Government consumption growth, Natural disasters, Procyclicality, WP

Publication Details

Pages:

27
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2009/158
Stock No:

WPIEA2009158
ISBN:

9781451873054
ISSN:

1018-5941

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