of the government’s reserve-accumulation policies. The dynamic effects of devaluation depend on the fiscal policy rule in … effect. In contrast to devaluation, the “equivalent” fiscal policies imply discontinuities in private consumption and …In pursuing a steady-state reserve target, policymakers in small open economies can resort to devaluation or to …

adjustment and the timing of the implementation of an adjustment program featuring a nominal devaluation. The effects of … postponing adjustment depend on the source of the original shock. In the case of a fiscal expansion, postponement implies a … larger eventual devaluation and greater deviations of macroeconomic variables from their steady-state values. For adverse …

This paper evaluates the growing literature on whether devaluation has contractionary effects on output in developing … suggests that many of the arguments on both sides of the contractionary devaluation debate require modification and that a … number of potential effects have been ignored. It is concluded that the direction of the impact effects of devaluation on …

This Selected Issues paper for the Republic of Armenia shows that building up fiscal space during economic expansions … of the lowest in the region, and significantly below potential. The legislative changes introducing a VAT threshold and a …

. The Stability and Growth Pact presents annual stability programs (SPs), which outlines the medium-term fiscal objectives …. The paper provides a preliminary review of the SPs, assesses the previous fiscal developments, and analyzes the medium …-term prospects implied by the new SPs. The study describes the revised stability program and also the past and prospective fiscal …

The choice of assigning monetary or fiscal policy to external balance is complicated when the authorities are concerned … policy on aggregate demand. An alternative strategy, in which fiscal policy is assigned to limit shifts in the current …

Written by Gisli Blondal, former Advisor in the IMF's Fiscal Affairs Department, the book examines the fiscal policy …