Fiscal Policy and Financial Development / David Hauner.

Format:

Book

Government document

Author/Creator:

Hauner, David.

Contributor:

International Monetary Fund. Fiscal Affairs Department.

Series:

IMF Working Papers; Working Paper ; No. 2006/026

IMF Working Papers

Language:

English

Subjects (All):

Fiscal policy.

Debts, Public.

Finance.

Banks and banking.

Economic development.

Physical Description:

1 online resource (26 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2006.

Language Note:

English

Summary:

We examine the effects of public sector borrowing from the domestic banking system on financial development in middle-income countries. While these countries' external debt has been falling, the share of bank credit absorbed by the public sector has been rising rapidly. We argue that this runs the risk of slowing financial development by affecting structural characteristics of the banking systems. We find empirical evidence that too much public sector borrowing harms financial deepening, and that banks mainly lending to the public sector tend to be more profitable but less efficient. We note that these effects add to the costs of fiscal prolificacy.

Contents:

""Contents""; ""I. INTRODUCTION""; ""II. HOW IMPORTANT IS PUBLIC SECTOR CREDIT, AND WHERE?""; ""III. HOW PUBLIC SECTOR CREDIT COULD HARM FINANCIAL DEVELOPMENT""; ""IV. DOES PUBLIC SECTOR CREDIT AFFECT THE DEPTH OF FINANCIAL DEVELOPMENT?""; ""V. DOES PUBLIC SECTOR CREDIT AFFECT THE QUALITY OF FINANCIAL DEVELOPMENT?""; ""VI. CONCLUDING REMARKS�IMPLICATIONS FOR FISCAL POLICY""; ""APPENDIX TABLES""; ""REFERENCES""

Notes:

"January 2006."

Includes bibliographical references (p. 22-24).

Description based on print version record.

ISBN:

9786613827692

9781462398249

1462398243

9781452779416

1452779414

9781283515245

1283515245

9781451908220

1451908229

OCLC:

712989259