Despite the voluminous literature on fiscal policy, very few papers focus on low-income countries (LICs). This paper develops a new-Keynesian small open economy model to show, analytically and through simulations, that some of the prevalent features of LICs-different types of financing including...

This Article explores government investment in banks and discusses some of the implications of the investments. In addition to detailing government bank stock investment during the current financial crisis, the article recounts the government's prior extensive investment in preferred stock of...