Policy Coordination in Lesotho: Kingdom of Lesotho

December 6, 2022

Preview Citation

Format: Chicago

Yibin Mu. Policy Coordination in Lesotho: Kingdom of Lesotho, (USA: International Monetary Fund, 2022) accessed December 30, 2024

Summary

In a country such as Lesotho with high capital mobility and leakages abroad, the relationship between both fiscal, monetary, and exchange rate policy is intertwined, such that public spending and reserves are strongly linked. The paper offers an overview of the economic institutions and arrangements in Lesotho, discusses a short primer on macroeconomic policies under a fixed exchange rate, stresses a vital role for macro policy coordination in Lesotho, and proposes a macro policy framework. While the paper is developed in context of Lesotho, the analysis should also be applicable to small open economies under the fixed exchange rate arrangement.

Subject: International organization, Monetary policy

Keywords: Debt policy, Financial stabilty, Fiscal policy, Fixed exchange, Macroeconomic policy, Monetary policy, Policy coordination

Publication Details

Pages:

14
Volume:

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DOI:

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Issue:

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Series:

Selected Issues Paper No. 2022/003
Stock No:

SIPEA2022003
ISBN:

9798400226601
ISSN:

2958-7875

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