Abstract
Macroeconomic dynamics in Africa have been dominated in the past by fiscal instability. A lack of fiscal discipline resulting in persistent deficits and a mounting stock of debt has often forced many central banks around the continent to implement unfavorable monetary policies, leading to macroeconomic instability. The important question then is, what are the symptoms and sources of this fiscal instability; that is, on which side of the budget does the deficit emerge?1 Are deficits followed by lower government revenues or by higher government spending? These questions call for disaggregation of the main components of deficits in order to evaluate the character of the causal relationship between revenue and spending.
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Obinyeluaku, M. (2015). Monitoring Fiscal Sustainability in Africa. In: Elhiraika, A.B., Mukungu, A.C.K., Nyoike, W. (eds) Regional Integration and Policy Challenges in Africa. Palgrave Macmillan, London. https://doi.org/10.1057/9781137462084_13
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DOI: https://doi.org/10.1057/9781137462084_13
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