01787cas a2200241 a 4500 AALejournalIMF004303 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451864793 1018-5941 BD-DhAAL BD-DhAAL Mitra, Pritha. Post-Crisis Recovery : When Does Increased Fiscal Discipline Work? / Pritha Mitra. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (43 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 Emerging market financial crises during the late 1990s were marked by sudden withdrawals of funds by foreign creditors, resulting in production declines. The IMF favored positive signals to potential foreign creditors and initially recommended disciplined fiscal policy during the height of crisis, countering standard Keynesian recommendations of expansionary fiscal stimulus. This paper formulates an open-economy general equilibrium model for resolving this policy conundrum and analyzing the impact of disciplined fiscal policy on post-crisis recovery. The model demonstrates via simulations that disciplined fiscal policy will improve (worsen) post-crisis recovery in the presence (absence) of appropriately defined production flexibility. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2006/219 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/219/001.2006.issue-219-en.xml IMF e-Library