01994cas a2200265 a 4500 AALejournalIMF018557 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484361696 1018-5941 BD-DhAAL BD-DhAAL Carriere-Swallow, Yan. The Macroeconomic Effects of Fiscal Consolidation in Emerging Economies : Evidence from Latin America / Yan Carriere-Swallow, Antonio David, Daniel Leigh. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (42 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 We estimate the short-term effects of fiscal consolidation on economic activity in 14 countries in Latin America and the Caribbean. We examine contemporaneous policy documents to identify changes in fiscal policy motivated by a desire to reduce the budget deficit and not by responding to prospective economic conditions. Based on this narrative dataset, our estimates suggest that fiscal consolidation has contractionary effects on GDP, consistent with a multiplier of 0.9. We find these effects to be close to those in OECD countries based on a similarly constructed dataset (Devries and others, 2011). We also find similar estimation results for the two groups of economies for the effect of fiscal consolidation on the external current account balance, providing support for the twin deficits hypothesis. Mode of access: Internet David, Antonio. Leigh, Daniel. IMF Working Papers; Working Paper ; No. 2018/142 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/142/001.2018.issue-142-en.xml IMF e-Library