Legacy of fiscal failures impacts persistence of budget cuts in emerging markets.
The article looks at what helps countries stick to their budget plans. It studied 25 developing countries from 1980 to 2001. The researchers found that past money problems, the size of the deficit, where the money goes, and how much money comes in all affect how long a country can keep up with its budget goals. They also saw that how much debt a country starts with, changes in exchange rates, inflation, and unemployment rates can also impact how successful a country is at sticking to its budget plans.