Hiccups for hipcs?
By: Craig Burnside, Domenico Fanizza.
Contributors: Fanizza, Domenico.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10903; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10903.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Debt relief -- Developing countries.; Fiscal policy -- Developing countries.; Monetary policy -- Developing countries.
Description: "In this paper we discuss fiscal and monetary policy issues facing heavily-indebted poor countries (HIPCs) who receive debt reduction via the enhanced HIPC initiative.  This debt relief program is distinguished from previous ones by its conditionality: freed resources must be used for poverty reduction.  We argue that (i) this conditionality severely limits the extent to which the initiative provides significant debt relief; (ii) depending on the response of monetary policy to an increase in social spending there could be a short-run increase in inflation in HIPC countries and (iii) the keys to long-run fiscal sustainability in the HIPCs are significant fiscal reforms by their governments, and the effectiveness of their poverty reduction programs in raising growth"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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