Fiscal expansion is expansionary!

Talk on fiscal policy at the ILO.  The preliminary paper is here.  The graphs I refer to in the talk are at the end of the paper. The link for the other papers presented is here.  The session was on macroeconomic policies for employment creation.


  1. Matias,

    Can you please explain the following from your paper please ?

    "The recent switch from external to domestic borrowing may lead countries to trade one type of vulnerability for another. For instance, countries that are switching from external to domestic debt could be trading a currency mismatch for a maturity mismatch."

    In case its difficult to explain in short, do you have a reference for it ?

  2. Normally countries that borrowed in foreign currency long term borrow in domestic currency short term. It's still better, since there is no default.


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