Precautionary Monetary and Fiscal Policies

Precautionary Monetary and Fiscal Policies
This paper explains why the debt reduction motive for countries that are subject to borrowing constraints and a volatile environment is greater than for those with a more stable environment and relatively better access to the financial markets. In particular, it shows that the possibility of losing the ability to borrow in the future induces... READ MORE...

Publication date: February 2007
ISBN 9781451865943
$18.00

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