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The Paraguayan authorities have prepared an economic program to stabilize their macroeconomic situation and begin a process of structural reform. Fiscal adjustment and structural reforms should pave the way for more rapid growth over the medium term. Despite these expected improvements in...
Persistent link: https://www.econbiz.de/10005252782
Several models establish a positive association between public debt ratios and long-term real yields, but the empirical evidence is not always conclusive. We reconsider this issue, focusing in particular on possible spillover effects of large advanced economies' debt levels to other economies'...
Persistent link: https://www.econbiz.de/10009293780
This paper discusses Trinidad and Tobago’s (TTO) Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on Banking Supervision, and Payment Systems. TTO’s financial system is relatively large and structurally complex, demonstrating both...
Persistent link: https://www.econbiz.de/10005825460
Kuwait’s 2005 Article IV Consultation reports that the economic and financial positions are projected to remain strong mainly on the expectation that world oil prices will decline only gradually. Reflecting sharply higher oil prices and production, economic conditions improved...
Persistent link: https://www.econbiz.de/10005825472
Japan is facing a sizable fiscal imbalance against a backdrop of weak trend growth and growing external imbalances in … reforms on the Japanese and world economies. Simulation results indicate that these could reduce substantially Japan's fiscal … imbalance with only limited spillovers to the rest of the world. Specifically, faster productivity growth would help lower Japan …
Persistent link: https://www.econbiz.de/10005825976
We present a model of the optimal level of international reserves for a small open economy that is vulnerable to sudden stops in capital flows. Reserves allow the country to smooth domestic absorption in response to sudden stops, but yield a lower return than the interest rate on the country's...
Persistent link: https://www.econbiz.de/10005826236
Empirical analysis does not suggest that reserves are "too high" in the majority of Asian countries, though China may be a special case. Much of the reserve increase in Asia can be explained by an optimal insurance model under which reserves provide a steady source of liquidity to cushion the...
Persistent link: https://www.econbiz.de/10005826420
currencies and its principal determinants: trade flows, financial flows and currency pegs. This result contrasts sharply with …
Persistent link: https://www.econbiz.de/10005826450
This paper on the First Review Under the Staff-Monitored Program (SMP) on Djibouti explains macroeconomic framework and policies. The policy discussions centered on the need to sustain the improvement in the country’s fiscal position in the remainder of the year and steadfast structural...
Persistent link: https://www.econbiz.de/10005767405
This paper examines Uruguay’s Fourth Review Under the Stand-By Arrangement and Requests for Modification of the Arrangement. The macroeconomic framework is broadly on track, but progress with structural reform has lagged. With regard to the quantitative performance criteria, there was a...
Persistent link: https://www.econbiz.de/10005768502