This paper examines the role of corruption in the design of monetary policies for developing countries in a framework …, or dollarization, while often prescribed as a solution to the problem of a lack of credibility for developing countries …, is typically not credible in countries with serious corruption. Second, the optimal degree of conservatism for a Rogoff …

Central government wage expenditures accounted for 7 percent of GDP in 99 countries during 1980-90 (unweighted average … countries, and small low-income economies tend to have lower central government wage expenditures as a percent of GDP. Access to … foreign financing is not; the public and publicly guaranteed foreign financing is often provided for government capital …

(s). Once endowed with those resources, relations between government and central bank should be designed so that significant … and risks presented by the operational environment. Attaining credibility is facilitated if the public can easily … institutional arrangements that ensure the central bank generates profit in most states of the world, is subject to strict ex post …

supports the argument that the credibility of an exchange rate peg is an important element to determine bilateral trade. There …

price stability and central bank credibility have reduced the second component …

administrations and government effectiveness (e.g. higher tax revenue mobilization, limiting corruption, better public finance …