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External Imbalances and Fiscal Policy

Philip R. Lane, Trinity College Dublin and CEPR

Abstract

We analyse the role of fiscal policy both in the emergence and the unwinding of external imbalances. Furthermore, we probe whether there is a role for fiscal policy in the prevention of excessive external imbalances. Finally, we ask whether fiscal policy could in practice successfully fulfill such a role.


Last updated 28 August 2014 by IIIS (Email).