An important aim of this paper is to take shifts in the long-term anchor in the empirical specifications. The study examines exchange-rate pass-through and external adjustment in the euro area. The impact on third-country trade and investment is also discussed. A better understanding of the...

This 2002 Article IV Consultation highlights that Croatia experienced solid growth in the last two years, with growth rates of about 4 percent exceeding those of the euro area and of many other transition countries. The recovery, initially propelled by private consumption and exports, has more...

This paper analyzes the basic data, social and demographic indicators of Madagascar. The study outlines the institutional arrangements for the determination and management of the Malagasy franc, and reviews the foreign exchange market developments. The paper assesses the country's international...

The Croatian authorities are likely to either meet or exceed the original growth, inflation, and international reserves objectives under the Stand-By Arrangement. Executive Directors commended the program, and stressed the need to maintain fiscal sustainability, and reduce public wages and...

One year after the deepest recession in recent history, Asia is leading the global recovery. The Regional Economic Outlook: Asia and Pacific discusses the near-term outlook for the region, as well as the medium-term policy challenges that countries face. As in many emerging and developing...

This paper analyzes the efforts taken to create fiscal space for the implementation of the fifth national development plan and the risk associated with it, examines the role of monetary policy in determining inflation, and discusses policy options to achieve low inflation. It also identifies...

Pakistan’s economy continued to perform strongly owing to sound macroeconomic management and structural reform. Executive Directors advised that tight fiscal and monetary policies are required to reduce inflation and the external current account deficit while lessening pressures on real...

The external sector has an increasing drag on the economy. The current account deficit remains fully financed by FDI, and the underlying balance is consistent with external-debt stabilizing levels. The stock market retrenchment has been severe, but it followed substantial gains since 2006....

The authorities announced a strategy to restore fiscal and debt sustainability, in conjunction with a transition out of sugar production. Discussions centered on restoring fiscal and debt sustainability, enhancing competitiveness and growth, and containing risks. However, policies need to be...

Although economic performance has remained good, difficulties in building consensus for institutional reform have caused an ill-affordable hiatus in economic policymaking. Robust economic activity absorbed a growing labor force and allowed the unemployment rate to decline continuously....