The paper examines intergovernmental fiscal relations in the Caribbean from the perspective of general principles of fiscal federalism and international practice, and considers the effects of intergovernmental design on macroeconomic management

Despite the general improvement in controlling price levels over the last two decades, substantial amount of the population in developing world still save and borrow in foreign denominated currencies. There are reasons to believe that high degree of financial dollarization might impose...

To ensure financial market stabilities, many Latin America countries implemented pure floating and inflation targeting (FIT) policies following the IMF's suggestions. The effectiveness of such policies is under investigation. This paper examines the long-run relationship between the real...

This paper examines the fiscal and monetary policy options available to China as a sovereign currency-issuing nation operating in a dollar standard world. We first summarize a number of issues facing China, including the possibility of slower growth, global imbalances, and a number of domestic...

We show that the optimal inflation target imposed on a discretionary central bank varies with the extent of fiscal decentralization. Our analysis compares two fiscal regimes for local government bond management: the partially decentralized (PD) regime where the central government determines the...

Migrants’ remittances are an important financial flow to their country of origin. Remittances sent by migrants reduce the level and severity of poverty in developing countries. Householders use this money received from migrants for their private consumption and their investments. This paper...