Russia introduced its inflation targeting regime in 2015. Subsequently, fiscal policy was changed with a view to reducing the economy's dependence on natural resource prices; these changes are known as “the fiscal rule”. At the same time, a financial stability policy and its instruments were...

This paper focuses on the interactions between public debt policy and foreign exchange reserve management. We found that, although foreign currency debt issuance can contribute significantly to the growth of foreign exchange reserves, it can cause serious difficulties in the assessment of...

The global financial and debt crisis highlights the need for a better understanding of how fiscal and monetary policies interact. This article examines three aspects of these interactions, as seen from the perspective of the Czech National Bank. It first looks at the effects of fiscal policy on...

We evaluate the financial and real linkages between fiscal and monetary policy in Peru, and show that during the recent export commodity price boom, public finances supported the implementation of monetary policy. In particular, the reduction of the net public debt has translated into a greater...

This paper provides a first assessment of the Federal Reserve's recent Maturity Extension Program, dubbed Operation Twist 2. Despite the mere exchange of short-term for long-term Treasury securities, the announcement effect is comparable to the second Large Scale Asset Purchase programme...

Over the past several years, the Indonesian government has pursued a prudent fiscal policy while still promoting economic growth. Since 2005, the government has shifted the source of deficit financing from external to domestic debt via the issuance of government securities. In doing so, it has...

This paper explores two important points regarding the Brazilian fiscal framework. The first part analyses the significant improvement of the fiscal stance in the last decade as the result of the promotion of fiscal discipline and debt management policies. This consolidation is argued to be one...

The global financial crisis showed that both authorities and markets failed to properly assess the size and the evolution of the public debt stock in various economies. In some countries the monetary authorities focused excessively on inflation, without taking into account other key...

As Saudi Arabia's oil export revenues constitute about 90% of its budget, its fiscal policy is largely a function of developments in the oil market. Over the years, a countercyclical fiscal stance has been used to reduce the volatility of domestic growth against the background of vacillating oil...