01681cas a2200241 a 4500 AALejournalIMF001408 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451859409 1018-5941 BD-DhAAL BD-DhAAL Kopits, George. How Can Fiscal Policy Help Avert Currency Crises? / George Kopits. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (16 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students An overview of crisis episodes in emerging-market economies with a pegged exchange rate regime in the 1990s suggests that sizable explicit or implicit government deficits, or market perceptions of lack of fiscal sustainability, render these economies vulnerable to currency crises under high capital mobility. It is argued in the paper that vulnerability to crisis can be mitigated by signaling a phased fiscal adjustment that involves credible implementation of key structural measures. In particular, fiscal policy rules, such as the ones being adopted in a number of emerging-market economies, constitute a potentially useful tool of crisis prevention. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2000/185 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/185/001.2000.issue-185-en.xml IMF e-Library