Franklin

Fiscal Constraints of a Fixed Exchange Rate Regime [electronic resource]

Author/Creator:
International Monetary Fund
Publication:
Washington, D.C. : International Monetary Fund, 1989.
Series:
IMF eLibrary
IMF Working Papers
Format/Description:
Government document
Book
1 online resource (26 p.)
Local subjects:
Account deficits.
Adjustable exchange rates.
Budget deficit.
Budget deficits.
Budgetary position.
Current account balance.
Current accounts.
Debt service.
Exchange controls.
Exchange rate.
Exchange rate change.
Exchange rate commitment.
Exchange rate mechanism.
Exchange rate parity.
Exchange rate policies.
Exchange rate policy.
Exchange rate pressures.
Exchange rate regime.
Exchange rate regimes.
Exchange rate stability.
Exchange rate system.
Exchange rate uncertainty.
Exchange rates.
Expansionary fiscal.
Expansionary fiscal policy.
Fiscal accounts.
Fiscal adjustment.
Fiscal authorities.
Fiscal autonomy.
Fiscal behavior.
Fiscal conditions.
Fiscal constraint.
Fiscal constraints.
Fiscal coordination.
Fiscal deficits.
Fiscal discipline.
Fiscal expansion.
Fiscal exposure.
Fiscal laxity.
Fiscal measures.
Fiscal policies.
Fiscal policy.
Fiscal positions.
Fiscal prudence.
Fiscal strategy.
Fiscal targets.
Fixed exchange rate.
Fixed exchange rate regime.
Fixed exchange rate system.
Fixed exchange rates.
Flexible exchange rate.
Flexible exchange rate regime.
Flexible exchange rate regimes.
Flexible exchange rates.
Floating exchange rate.
Floating exchange rate regimes.
Floating exchange rates.
Government deficit.
Government spending.
Hard currency.
Primary budget deficit.
Public debt.
Public finance.
Real exchange rates.
Restrictive fiscal policies.
Stable exchange rates.
Tax evasion.
Tax system.
Taxation.
Belgium.
France.
Germany.
Netherlands.
Summary:
The paper considers whether the implementation of a fixed exchange rate regime requires or implies binding constraints on fiscal policy. The main conclusions are that, from a country perspective, the effective constraint is on the degree of monetary financing, which bears an uncertain relationship to the size of the budget deficit; that, from a systemic perspective, the financial stability of the currency area can be ensured by making the monetary and fiscal authorities independent of one another; and that the case for coordination of fiscal policies—whatever its merits—is not enhanced by the creation of a fixed exchange rate regime.
Notes:
Description based on print version record.
Contributor:
International Monetary Fund
Other format:
Print Version:
ISBN:
1451946686:
9781451946680
ISSN:
1018-5941
Publisher Number:
10.5089/9781451946680.001
Access Restriction:
Restricted for use by site license.
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