Fixing the exchange rate stabilises inflation and reduces monetary seignoriage, a key source of financing under the fiscal dominance hypothesis. However, the link between fixed exchange rate regimes and fiscal discipline in emerging markets has been found to be weak. This paper thoroughly...

This paper calculates the equilibrium exchange rates for the Euro and the rest of the G-7 currencies. Building on the methodology of Alberola et al., it is shown that the stock of net foreign assets and the evolution of productivity are the fundamentals underlying the behaviour of the real...

Observed budget balances are an imperfect indicator of the fiscal policy stance, because fluctuations in economic activity induce automatic changes in the balance, hence the use of cyclically-adjusted balances (CAB). However, this paper shows that CABs (as measured through one of the two methods...

Este estudio pretende evaluar las consecuencias del ingreso de España en la Unión Monetaria Europea (UME) mediante la revisión crítica de la literatura teórica y empírica sobre la misma, con especial referencia al caso español. Nuestro objetivo es obtener una visión global de la...

This paper explores the impact of actual exchange rate regimes on fiscal discipline, which we purportedly link to the effect of announcing the peg and to the availability of external funds. To stress this point, the focus of the analysis is emerging markets spanning from the beginning of the...

Exchange rates in Latin America display a large volatility, constitute a central element of the policy strategies and their evolution have an important impact on financial stability due to the dollarization of liabilities which most countries exhibit. However, assessments on equilibrium exchange...

El objetivo de la política económica en la última década ha sido la inserción de la economía española en el sistema económico europeo, caracterizado, en lo económico, por la apertura comercial y la competencia y, en lo social, por la existencia de un desarrollado Estado del Bienestar....