Designing Monetary and Fiscal Policy in Low-Income Countries

By Jan Kees Martijn, Gabriel Di Bella, Shamsuddin Tareq, Benedict J. Clements, Abebe Aemro Selassie

July 19, 2006

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Jan Kees Martijn, Gabriel Di Bella, Shamsuddin Tareq, Benedict J. Clements, and Abebe Aemro Selassie. Designing Monetary and Fiscal Policy in Low-Income Countries, (USA: International Monetary Fund, 2006) accessed December 21, 2024

Summary

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 as well as 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.

Subject: Expenditure, Inflation, Monetary base, Money, Prices, Public debt, Revenue administration

Keywords: Debt, Debt sustainability consideration, Deficit, Double-digit inflation, Economic growth rate, Global, IMF-World Bank cooperation, Inflation, Monetary base, OP, Public expenditure management systems, Stabilization country, The PRGF

Publication Details

Pages:

58
Volume:

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DOI:

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Issue:

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Series:

Occasional Paper No. 2006/005
Stock No:

S250EA
ISBN:

9781589064966
ISSN:

0251-6365

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