Macroeconomic Issues in Small States and Implications for Fund Engagement
Policy Papers, February 20, 2013
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Bibliographic details
- Published: February 20, 2013
- Series: Policy Papers
Summary
- This paper reviews the macroeconomic characteristics and performance of small states and discusses ways in which the Fund’s engagement with these countries could be better tailored to meet their needs.
- The Fund previously examined small states issues in 2000, informed by a Joint Task Force Report of the Commonwealth Secretariat (CS) and World Bank.
- Small states continue to face many of the same challenges they did then, and the 2000 Small States Report remains the foundation for much of the work in this area, both inside and outside the Fund.
- However, the relative macroeconomic performance of small states has deteriorated since the late 1990s, and a fresh look is warranted.
Major findings and thematic observations
- Cross country analysis: small states exhibit distinctive macroeconomic characteristics that warrant tailored analysis.
- Debt and public debt: the paper examines public debt dynamics specific to small states.
- Economic conditions and growth: relative macroeconomic performance of small states has deteriorated since the late 1990s.
- Economic indicators and exchange rate regimes: the paper considers how indicators and exchange rate arrangements affect small states.
- Fiscal policy and monetary policy: policy design and implementation challenges specific to small states are reviewed.
- Relationships with Fund and Surveillance: discusses ways the Fund’s engagement could be better tailored to meet small states’ needs.
- Subject tags included in the source: Cross country analysis, Debt restructuring, Economic conditions, Economic growth, Economic indicators, Exchange rate regimes, Fiscal policy, Monetary policy, Public debt, Relationships with Fund, Small states, Surveillance.
Policy implications and recommendations for Fund engagement
- Tailor Fund engagement to recognize the enduring challenges small states face, drawing on the 2000 Small States Report as a foundational reference.
- Conduct a fresh assessment given that relative macroeconomic performance has deteriorated since the late 1990s.
- Adapt surveillance, program design, and technical assistance to the specific fiscal, monetary, and external vulnerabilities of small states.
- Address debt restructuring and public debt sustainability with approaches sensitive to small states’ limited policy space and exposure to external shocks.
- Strengthen diagnostic tools and cross-country analysis to better capture small states’ economic indicators and exchange rate regime implications.
Publication metadata (as presented in source)
- Publication title: Macroeconomic Issues in Small States and Implications for Fund Engagement
- Date: February 20, 2013
- Citation example from source: Macroeconomic Issues in Small States and Implications for Fund Engagement, (USA: International Monetary Fund, 0) accessed 9/18/2026
- Publication type shown on page: Policy Papers (web landing page)
- Publication subjects (as listed): Cross country analysis, Debt restructuring, Economic conditions, Economic growth, Economic indicators, Exchange rate regimes, Fiscal policy, Monetary policy, Public debt, Relationships with Fund, Small states, Surveillance
- Publication details shown: Pages: ---, Volume: , DOI: , Issue: , Series: , Stock No: , ISBN: , ISSN:
Source: Macroeconomic Issues in Small States and Implications for Fund Engagement — February 20, 2013 — https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/macroeconomic-issues-in-small-states-and-implications-for-fund-engagement-pp4745
Content in this bundle
- 1. Small States: Selected Indicators