Emerging markets (EMs) often respond to shocks by intervening in foreign exchange (FX) markets and thus preventing full exchange rate adjustment. This response can serve to dampen the effect of shocks and increase monetary policy space but may also incentivize economic participants to increase...

Fiscal imbalances are one of the common economic indicators of developing countries as these countries have a structural weakness on one hand and a strong desire to invest in capital intensive projects that speeds up the pace of development. It has been noticed that in the last couples of years...