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This paper presents a comprehensive crosscountry database of …scal space, broadly de…ned as the availability of budgetary resources for a government to service its …nancial obligations. The database covers up to 200 countries over the period 1990-2016, and includes 28 indicators of …scal space grouped into four categories: debt sustainability, balance sheet vulnerability, external and private sector debt related risks as potential causes of contingent liabilities, and market access. We illustrate potential applications of the database by analyzing developments in …scal space across three time frames: over the past quarter century; during …nancial crises; and during oil price plunges. The main results are as follows. First, …scal space had improved in many countries before the global …nancial crisis. In advanced economies, following severe deteriorations during the crisis, many indicators of …scal space have virtually returned to levels in the mid-2000s. In contrast, …scal space has shrunk in many emerging market and developing economies since the crisis. Second, …nancial crises tend to coincide with deterioration in multiple indicators of …scal space, but they are often followed by reduced reliance on short-term borrowing. Finally, …scal space narrows in energy-exporting emerging market and developing economies during oil price plunges but later expands, often because of procyclical …scal tightening and, in some episodes, a recovery in oil prices.

This paper presents a comprehensive crosscountry database of …scal space, broadly de…ned as the availability of budgetary resources for a government to service its …nancial obligations. The database covers up to 200 countries over the period 1990-2016, and includes 28 indicators of …scal space grouped into four categories: debt sustainability, balance sheet vulnerability, external and private sector debt related risks as potential causes of contingent liabilities, and market access. We illustrate potential applications of the database by analyzing developments in …scal space across three time frames: over the past quarter century; during …nancial crises; and during oil price plunges. The main results are as follows. First, …scal space had improved in many countries before the global …nancial crisis. In advanced economies, following severe deteriorations during the crisis, many indicators of …scal space have virtually returned to levels in the mid-2000s. In contrast, …scal space has shrunk in many emerging market and developing economies since the crisis. Second, …nancial crises tend to coincide with deterioration in multiple indicators of …scal space, but they are often followed by reduced reliance on short-term borrowing. Finally, …scal space narrows in energy-exporting emerging market and developing economies during oil price plunges but later expands, often because of procyclical …scal tightening and, in some episodes, a recovery in oil prices.

This paper examines whether cross-border capital flows can be regulated by imposing capital account restrictions (CARs) in both source and recipient countries, as was originally advocated by John Maynard Keynes and Harry Dexter White. To this end, we use data on bilateral cross-border bank flows from 31 source to 76 recipient (advanced and emerging market) countries over 1995-2012, and combine this information with a new and comprehensive dataset on various outflow and inflow related capital controls and prudential measures in these countries. Our findings suggest that CARs at either end can significantly influence the volume of cross-border bank flows, with restrictions at both ends associated with a larger reduction in flows. We also find evidence of cross-border spillovers whereby inflow restrictions imposed by countries are associated with larger flows to other countries. These findings suggest a useful scope for policy coordination between source and recipient countries, as well as among recipient countries, to better manage potentially disruptive flows.