01789cas a2200253 a 4500 AALejournalIMF004798 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451866209 1018-5941 BD-DhAAL BD-DhAAL Mendoza, Enrique. International Evidenceon Fiscal Solvency : Is Fiscal Policy "Responsible"? / Enrique Mendoza, Jonathan Ostry. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (30 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 This paper looks at fiscal solvency and public debt sustainability in both emerging market and advanced countries. Evidence of fiscal solvency, in the form of a robust positive conditional relationship between public debt and the primary fiscal balance, is established in both groups of countries. Evidence of fiscal solvency is much weaker, however, at high debt levels. These findings suggest that many industrial and emerging market economies, including several where fiscal solvency has been the subject of recent debates, appear to conduct fiscal policy responsibly. Yet our results cannot reject the hypothesis of fiscal insolvency in groups of countries with high debt ratios. Mode of access: Internet Ostry, Jonathan. IMF Working Papers; Working Paper ; No. 2007/056 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/056/001.2007.issue-056-en.xml IMF e-Library