One major finding emerging from the meeting was that improved fiscal positions helped\u00a0many EMEs to rely on countercyclical fiscal and monetary policies to stabilise their\u00a0economies during the recent global financial crisis. Anchoring medium-term fiscal
\nexpectations was crucial, but it was not by itself sufficient to insulate the economy from the\u00a0shock. Greater access to domestic financing and the consequent reduction of currency\u00a0mismatches, enabled by the domestic currency bond market, played an important role.<\/p>\n
Several country papers in this volume discuss the factors heralding this change. In mostcases, measures to strengthen medium-term fiscal sustainability and monetary policycredibility played a decisive role. Brazil provides an interesting example of a dramaticturnaround in an economy that was once considered to be very vulnerable to crisis and\u00a0procyclical policies.<\/p>\n
As noted in the paper prepared by Ara\u00fajo, Azevedo and Costa, Brazil\u2019spolicy flexibility was enhanced by a number of critical policy reforms in the 1990s and 2000s,including the switch to an inflation targeting regime; concerted actions by the central bankand the Treasury to reduce the magnitude of short-term and various types of index-linkeddebt in the economy; and the introduction of the 1999 Fiscal Responsibility Law to strengthenfinancial institutions and transparency as well as to reinforce the goal of maintaining consistent primary surpluses.<\/p>\n","protected":false},"excerpt":{"rendered":"
Some of topics presented in this summary are :<\/p>\n
Fiscal policy, public debt and monetary policy in EMEs.\u00a0Is monetary policy constrained by fiscal policy?\u00a0Developments of domestic government bond markets in EMEs and their implications.\u00a0Central bank and government debt management: issues for monetary policy.<\/p>\n","protected":false},"featured_media":9094,"template":"","meta":{"inline_featured_image":false},"product_brand":[],"product_cat":[10379],"product_tag":[10412,10414,10415,10413],"class_list":{"0":"post-9091","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-altax-library-en","7":"product_tag-fiscal","8":"product_tag-monetary","9":"product_tag-policy","10":"product_tag-public-debt","12":"first","13":"instock","14":"sale","15":"downloadable","16":"virtual","17":"purchasable","18":"product-type-simple"},"yoast_head":"\n