Fiscal Discipline and Exchange Rate Regimes : Evidence From the Caribbean

Evidence From the Caribbean

Fiscal Discipline and Exchange Rate Regimes : Evidence From the Caribbean
This paper assesses the nature of fiscal discipline under alternative exchange rate regimes. First, it shows in a simple theoretical framework that fiscal agencies under a currency union with a fixed exchange rate can have the largest incentive to overspend or "free-ride" (compared to those under other exchange rate regimes) owing to their... READ MORE...

Publication date: May 2006
ISBN 9781451863796
$15.00

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