TY - BOOK ID - 84540175 TI - Market-Based Fiscal Discipline in Monetary Unions : Evidence From the U.S. Municipal Bond Market AU - Goldstein, Morris. AU - Woglom, Geoffrey. PY - 1991 SN - 1462393357 1455223271 1281258458 9786613778048 1455265543 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Exports and Imports KW - Investments: Bonds KW - Public Finance KW - International Lending and Debt Problems KW - General Financial Markets: General (includes Measurement and Data) KW - Fiscal Policy KW - Debt KW - Debt Management KW - Sovereign Debt KW - International economics KW - Investment & securities KW - Macroeconomics KW - Public finance & taxation KW - Debt default KW - Fiscal policy KW - Bonds KW - Municipal bonds KW - Government asset and liability management KW - External debt KW - Financial institutions KW - Public financial management (PFM) KW - Debts, External KW - Finance, Public KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84540175 AB - The concept of market-based fiscal discipline posits that a government which runs persistent, excessive fiscal deficits will face an increased cost of borrowing and eventually, a reduced availability of credit, and that these market actions will provide an incentive to correct irresponsible fiscal behavior. This paper presents new empirical evidence on market-based fiscal discipline by estimating the relationship between the cost of borrowing and fiscal policy behavior across U.S. states. We find that U.S. states which have followed more prudent fiscal policies are perceived by the market as having lower default risk and are therefore able to reap the benefit of lower borrowing costs. ER -