Designing Monetary and Fiscal Policy in Low-income Countries (Paperback)Abebe A. Selassie (author), International Monetary Fund (author), Benedict J. Clements (author), Shamsuddin Tareq (author), Jan Kees Martijn (author), Gabriel Di Bella (author)
Paperback 50 Pages / Published: 30/07/2006
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Macroeconomic outcomes in low-income countries (LICs) have improved markedly in recent years, but important questions remain regarding possible adjustments in the design of IMF-supported programs in such countries.This paper draws on a review of the literature and the experience of 15 LICs that have attained some degree of macroeconomic stability to discuss, for example, the appropriate target range for inflation in shock-prone LICs; whether countries should use fiscal space to cut excessive tax burdens, reduce high debt levels, or raise public spending; and how the effectiveness of public expenditures can be improved.
Publisher: International Monetary Fund (IMF)
Number of pages: 50
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