Fiscal Deficits, Monetary Reform and Inflation
Author: Nina Budina
Publisher:
Published: 1996
Total Pages: 66
ISBN-13:
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Author: Nina Budina
Publisher:
Published: 1996
Total Pages: 66
ISBN-13:
DOWNLOAD EBOOKAuthor: Nina Budina
Publisher: World Bank Publications
Published: 2000
Total Pages: 38
ISBN-13:
DOWNLOAD EBOOKFiscal problems are a key factor behind the inflation that has persisted in Eastern Europe since 1989. Deficits need to be cut back, but by how much for a given inflation target? A simple framework links debt, the deficit, and inflation to assess the fiscal stance of the Romanian economy.
Author: Nina Budina
Publisher:
Published: 1996
Total Pages:
ISBN-13:
DOWNLOAD EBOOKAuthor: Nina Budina
Publisher:
Published: 1995
Total Pages: 24
ISBN-13:
DOWNLOAD EBOOKAuthor: E. Murat Ucer
Publisher: International Monetary Fund
Published: 1995-08-01
Total Pages: 56
ISBN-13: 1451850069
DOWNLOAD EBOOKThis paper examines the short- and long-run effects of exchange market reform in developing countries. The first part reviews the recent experience of Guyana, India, Jamaica, Kenya, Sierra Leone, and Sri Lanka with exchange market reform. The second part studies analytically the short-run dynamics of the parallel market premium and the money supply upon unification, when the post-reform regime consists of either a pure float or a managed float. The third part discusses the impact of unification on inflation and quasi-fiscal deficits, and identifies a variety of implicit taxes and subsidies that must be taken into account in assessing the longer-run effects of exchange market reform.
Author: Shruthi Jayaram
Publisher:
Published: 2008
Total Pages:
ISBN-13:
DOWNLOAD EBOOKThis paper begins with a brief overview of the prevailing fiscal scenario in India, emphasizing the path of the fiscal deficit between 1991 and the present fiscal year. It then examines the prevailing monetary policy framework and the key issues involved which lead up to a debate on monetary reform in India. It examines the link between fiscal deficits and price stability/inflation management. This is done in two parts - the first examining the impact of fiscal policy on inflation, and the second examining the impact of monetary policy on government debt and deficit. These impacts are examined by explaining the existing theory of the links between these issues, and then contextualizing each of the links for the Indian case. Having established that complementary fiscal rules are needed before moving towards establishing a monetary policy rule in India, the paper examines the existing fiscal rules and their suitability/efficacy towards supporting possible monetary reform, and concludes by looking at fiscal and political limitations towards monetary reforms in India.
Author: Mr.Vincent Bodart
Publisher: International Monetary Fund
Published: 1996-05-01
Total Pages: 40
ISBN-13: 145196837X
DOWNLOAD EBOOKThe paper explores the inflationary implications of exchange rate regime reforms in a small open economy model combining the public finance view of inflation with multiple exchange markets. To account for the experience of many developing countries, the analysis focuses on transitions to multiple official exchange markets. In those countries, multiple exchange rates were often announced as temporary. The paper shows that the dynamic response of inflation to the reform markedly differ whether the announcement is credible or not. The paper also compares the response of inflation under a fixed crawl of nominal official rates and under the presence of policy rules aimed at reducing the spread between the official and parallel exchange rates.
Author: Sweder van Wijnbergen
Publisher:
Published: 1989
Total Pages: 40
ISBN-13:
DOWNLOAD EBOOKThis new model can be used to derive the financeable fiscal deficit, given inflation targets, or to derive an equilibrium inflation rate for which no fiscal adjustment would be necessary. Here it is used to analyze inflation, external debt, and financial sector reform in Turkey.
Author: Pierre-Richard Agénor
Publisher: International Monetary Fund
Published: 1992-08-01
Total Pages: 34
ISBN-13: 1451965311
DOWNLOAD EBOOKThe introduction of a new currency has often occurred as part of a program to fight hyperinflation. In this context, non-uniform conversion rates for different types of assets and liabilities have been used as a means of reducing an initial “excess” stock of liquidity. The paper examines the anticipatory dynamics associated with such reforms. The analysis suggests that monetary reforms of this type have a deflationary effect upon announcement as well as during the transition period. Under uncertainty about the reform date, the direction of the initial jump in prices upon announcement is a priori ambiguous. Upon implementation, a monetary reform leads to a downward jump in prices.
Author: Mr.Pierre L. Siklos
Publisher: International Monetary Fund
Published: 1994-05-01
Total Pages: 30
ISBN-13: 1451967322
DOWNLOAD EBOOKThis paper surveys three types of monetary arrangements. It considers how the choice of an exchange rate regime, the degree of central bank independence, or choice of currency unions or boards depends not only on economic considerations but also on political economy considerations. In economic terms, the choice of monetary regime will depend on the policy that is best suited to reducing or stabilizing inflation. In political economy terms, the choice of monetary arrangement will ultimately depend on how independent a country wishes to be from shocks emanating from the rest of the world and the weight politicians attach to influencing economic conditions in their own country.