policy choices do not matter for per capita economic growth. However, they do matter for output volatility and the medium …-term level of inflation. Greater monetary independence is associated with lower output volatility while greater exchange rate … stability implies greater output volatility, which can be mitigated if a country holds international reserves (IR) at a higher …

neglected perspective that the vulnerabilities associated with a given public debt/GDP increase with the future volatility of …

significant relationship between hot money and REER. -- Real exchange rate ; terms of trade ; international reserves ; volatility …