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The paper examines the joint impact of inflation targeting (IT) and fiscal rules (FR) on fiscal behavior and inflation in a broad panel of advanced and developing economies over the period 1990-2009. The main contribution of the paper is to show that, as suggested by the theoretical literature, interactions between FR and IT matter a great deal for policy outcomes. Specifically, the combination of FR and IT appears to deliver more disciplined macroeconomic policies than each of these institutions in isolation. In addition, the sequencing of the monetary and fiscal reforms plays a role: adopting FR before IT delivers stronger results than the reverse sequence.

Economic development. --- International finance. --- International monetary system --- International money --- Finance --- International economic relations --- Development, Economic --- Economic growth --- Growth, Economic --- Economic policy --- Economics --- Statics and dynamics (Social sciences) --- Development economics --- Resource curse --- Inflation --- Macroeconomics --- Money and Monetary Policy --- Public Finance --- Monetary Policy --- Central Banks and Their Policies --- Comparative or Joint Analysis of Fiscal and Monetary Policy --- Stabilization --- Treasury Policy --- National Deficit Surplus --- Fiscal Policy --- Price Level --- Deflation --- Monetary economics --- Fiscal policy --- Fiscal rules --- Fiscal stance --- Inflation targeting --- Prices --- Monetary policy --- Poland, Republic of

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The “Great Trade Collapse” triggered by the 2008-09 crisis calls for a careful assessment of the trade losses from financial crises. We adopt a more detailed perspective by looking at the response of different types of trade (i.e. agricultural, mining, and manufactured goods, and services) following various types of financial crises (i.e. debt, banking, and currency crises). Estimations performed on the 1980-2018 period using a combination of impact assessment and local projections to capture a causal dynamic effect running from financial crises to the trade activity show that the collapse of total trade is long-lasting and mainly driven by the fall of manufacturing and to some extent services trade. These causal effects are found to operate through three channels: a structural, a demand-side, and a supply-side channel. By contributing to the understanding of the trade effects of financial crises, our analysis provides insightful support for the design and implementation of policies aimed at coping with these effects.

Macroeconomics --- Economics: General --- Financial Risk Management --- Exports and Imports --- Banks and Banking --- Financial Crises --- Trade: General --- Foreign Exchange --- Economic & financial crises & disasters --- Economics of specific sectors --- International economics --- Financial crises --- Currency crises --- Banking crises --- Exports --- International trade --- Imports --- Informal sector --- Economics