Monetary and Fiscal Coordination in Small Open Economies
March 1, 2000
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Summary
This paper is concerned with the design of institutional arrangements for low inflation in small open economies. In the real world of information asymmetries, uncertain expectations and changeable preferences, it is not enough to create an autonomous and publicly accountable central bank. In addition, the central bank and the treasury must work together on the design, implementation, monitoring and, when necessary, the revision of macroeconomic policy, and on providing the public with information on ongoing economic developments and interpretation of the macroeconomic strategy.
Subject: Banking, Exchange rates, Expenditure, Fiscal policy, Foreign exchange, Inflation, Institutional arrangements for revenue administration, Prices, Revenue administration
Keywords: borrowing requirement, budgetary cycle, Caribbean, central bank authority, central bank autonomy, Central Bank Independence, conscientious government, debt management, economic policy, Exchange rates, financing requirement, government financing, government paper, government undertaking, Inflation, Institutional arrangements for revenue administration, Monetary Policy, WP
Pages:
28
Volume:
2000
DOI:
Issue:
056
Series:
Working Paper No. 2000/056
Stock No:
WPIEA0562000
ISBN:
9781451847697
ISSN:
1018-5941
