Modern Money Theory (MMT) has generated considerable scrutiny and discussions over the past decade. While it has gained some acceptance in the financial sector and among some politicians, it has come under strong criticisms from all sides of the academic spectrum and from conservative political...

Government debt has risen substantially in emerging market and developing economies (EMDEs) since the global financial crisis. The current environment of low global interest rates and weak growth may appear to mitigate concerns about elevated debt levels. Considering currently subdued...

This paper empirically studies the effects of fiscal policy shocks on private consumption. Further, it tries to determine if the initial conditions of the economy, such as the financing needs of the government or previous fiscal deficits, affect that relationship. We use yearly data between 1970...

In the analysis of public and external debt sustainability the National Bank of the Republic of Macedonia is actively using the IMF's Debt Sustainability Analysis (DSA) framework. The aim of our analysis is to improve the analytical power of the IMF's DSA framework, in the case of Macedonia....

This paper deploys a simple stock-flow consistent (SFC) model in order to examine various contentions regarding fiscal and monetary policy. It follows from the model that if the fiscal stance is not set in the appropriate fashionthat is, at a well-defined level and growth ratethen full...

This paper analyses the pre-tax inequality in the income that individuals actually receive in Brazil and the role of the personal income tax in regulating these incomes. We produce a new distributional series of fiscal income, consistently combining annual and nationally representative household...

This paper develops tools to examine selected major issues in the Indian economy. The study computes the potential growth rate of the economy and the agricultural sector, extends the analysis of the fiscal stimulus and its effects, and estimates the short and long run elasticities of India's...

The paper sheds light on the apparent success of dollarization in Ecuador. The experience of Argentina with convertibility is used to anchor the analysis. Two key factors are seen to play the most important role: first, the behavior of the real exchange rate and second, the source of external...

The empirical literature points the financial intermediation, measured by the level of credits relative to GDP in the economy, as one of the factors which affects the current account dynamics in a given country. This paper tries to estimate and then quantify the possible impact that household...

Mining resources have played an important role in the economy of Zambia. The country faces serious development challenges. This Working Paper investigates to which extent the mining of natural resources has facilitated public action regarding these challenges or whether, on the contrary, mining...