TY - BOOK ID - 134264830 TI - Do Middle-Income Countries Continue To Have the Ability to Deal with the Global Financial Crisis ? AU - van Doorn, Ralph AU - Gooptu, Sudarshan AU - Suri, Vivek PY - 2010 PB - Washington, D.C., The World Bank, DB - UniCat KW - Bankruptcy and Resolution of Financial Distress KW - Capital flow KW - Capital markets KW - Debt KW - Debt management KW - Debt Markets KW - Economic Theory & Research KW - Emerging Markets KW - Exchange rate KW - Exporter KW - Exporters KW - External Debt KW - Finance and Financial Sector Development KW - Financial crisis KW - Financial market KW - Fiscal policies KW - Fiscal policy KW - Foreign exchange KW - Foreign exchange reserves KW - Inflation KW - International bank KW - International Economics and Trade KW - Macroeconomic policies KW - Macroeconomic variables KW - Macroeconomics and Economic Growth KW - Market conditions KW - Private Sector Development KW - Sovereign debt KW - Warrants UR - https://www.unicat.be/uniCat?func=search&query=sysid:134264830 AB - This paper introduces an "index of macroeconomic space" - demonstrating the ability of a country to run a countercyclical fiscal policy or a fiscal stimulus at any point in time - to show how a sample of 20 mostly middle-income countries had entered the 2008 global financial crisis with different initial conditions that, in turn, determined their ability to respond to this crisis. Since 2008, many have implemented expansionary fiscal policies and have used up available macroeconomic space. Most have had to resort to increased borrowing by the public sector, both externally and domestically. Can the middle-income countries restore their pre-2008 macroeconomic space (to the level given by historical averages of key macroeconomic variables) or contain it from further deterioration in the medium term? In an endeavor to address this question, this paper shows, through illustrative scenarios, that the room to maneuver for some countries is somewhat limited unless they embark on severe, unprecedented fiscal adjustments or they may need more time to do so than current projections seem to suggest. ER -