demand for international reserves with SDR allocations: (i) there are efficiency gains, as SDRs can be created at zero … obtain reserves, and (ii) there would be a reduction in systemic risk, as SDRs would substitute to some extent for borrowed …

environment, inflation fell significantly to 2¾ percent in 2004—the lowest inflation rate since the early 1970s. The return of …

important implications for the IMF’s work in assessing crisis vulnerabilities. IMF surveillance work has been strengthened and …

exchange rate and moderate inflation pressures in 2003 and 2004. The fiscal deficit narrowed from 6.5 percent of GDP in 2002 to … near balance in 2003, while a tighter monetary policy helped to reduce inflation from 28 percent in 2002 to 13 percent in …

The rebound in inflation since mid-2007 is mostly owed to a jump in food prices in Paraguay. The price volatility of … fruits and vegetables explains the divergence between headline and core inflation indicators observed in 2007. Following a … decline that started in 2006, core inflation has risen in the second part of 2007. High export volume growth, coupled with a …

inflation, has been effective in reducing demand and price pressures in the economy. High interest rates supported by tighter …