This paper outlines some issues regarding the interaction of independent fiscal authorities and one central bank in the European monetary union. It points out the possibilities for coordination failures, ranging everywhere from potentially excessive deficits and free-riding problems to...

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...

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

This paper studies the efficacy of China's financial reforms in helping the central monetary authority to achieve its goals of macroeconomic stabilization. A local-local monetary game is presented which examines the investment competition between local governments in different hypothetical...

With gross government debt of 226% of GDP, Japan’s fiscal situation is in uncharted territory and puts the economy at risk. Japan needs a detailed and credible fiscal consolidation plan, including specific revenue increases and measures to control spending to restore its fiscal sustainability....