01770cas a2200241 a 4500 AALejournalIMF015797 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513508955 1018-5941 BD-DhAAL BD-DhAAL Yousefi, Seyed Reza. Public Sector Balance Sheet Strength and the Macro Economy / Seyed Reza Yousefi. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (27 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 introduces concepts of public sector balance sheet (PSBS) strength, taking into account different aspects of what governments own in addition to what they owe. It develops measures of PSBS strength and investigates their macroeconomic implications. Empirical estimations show that in their pricing of sovereign bonds, financial markets account for government assets and net worth in addition to their liabilities. Furthermore, economies with stronger public sector balance sheets experience shallower recessions and recover faster in the aftermath of economic downturns. This faster return to growth can be explained by the greater space for countercyclical fiscal policy in countries with stronger balance sheets. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2019/170 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/170/001.2019.issue-170-en.xml IMF e-Library