ECONOMY:FISCAL POLICY:Counter-Cyclical Fiscal Policies in - TopicsExpress

ECONOMY:FISCAL POLICY:Counter-Cyclical Fiscal Policies in Developing Countries Prior to the financial crisis, an improvement in the fiscal position of many developing countries was reflected in a substantial decline in their public debt during the 2000s (see Chart 1). The median ratio of general government debt to GDP among middle income countries (MICs) almost halved from near 60 percent in 2002 to just over 30 percent in 2008. Median debt in a sample of low income countries (LICs) fell even more precipitously over this period, aided by substantial debt relief.

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