Download or read book Why Higher Fiscal Spending Persists when a Boom in Primary Commodities Ends written by Bruno Boccara and published by World Bank Publications. This book was released on 1994 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: After the initial boom in fiscal spending that accompanies a commodity boom, why do commodity- exporting countries tend to maintain higher spending levels despite a drop in commodity prices? Probably because of liquidity constraints and the costs of policy reversal.