'Monetary and Fiscal Rules in an Emerging Small Open Economy' /

We develop a optimal rules-based interpretation of the 'three pillars macroeconomic policy framework': a combination of a freely floating exchange rate, an explicit target for inflation, and a mechanism than ensures a stable government debt-GDP ratio around a specified long run. We show ho...

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Bibliographic Details
Main Author: Levine, Paul
Other Authors: Batini, Nicoletta, Pearlman, Joseph
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2009.
Series:IMF Working Papers; Working Paper ; No. 2009/022
Online Access:Full text available on IMF