This paper considers monetary and fiscal policy responses to oil price shocks in low income oil importing countries. I … macroeconomic issues when exchange rates are flexible. The welfare gains from a policy that finances the subsidy through lump sum … taxation are small compared to the policy with full pass through. For most calibrations the losses from financing the policy …

– The findings show that expansionary monetary policy such as an increase in money supply stimulates bank lending, while … contractionary monetary policies like increase in the monetary policy rates by the central banks lead to credit contraction, albeit a … rigidities in the system characteristic of developing countries that undermine the effectiveness of monetary policy transmission …

fragile states is affected by highly volatile domestic factors that complicate monetary policy’s ability to deliver price … contribution of monetary policy shocks to inflation is moderate, reflecting its broadly neutral stance throughout most of the last … two decades. However, monetary policy has occasionally made larger contributions to inflation, and recently helped contain …

. Within this context, the present chapter aims to discuss the relationships between these macroeconomic policy fronts and a …

country like Tunisia. It argues that an ELR-led economic development policy is vastly superior to the traditional import … policy reforms that must accompany an ELR program to ensure long-term growth sustainability along with full employment and …