04491oam 22010454 450 991078852140332120230829002228.01-4623-9016-11-4519-8633-51-282-39212-397866138205561-4519-0913-6(CKB)3360000000443095(EBL)3014538(SSID)ssj0000940824(PQKBManifestationID)11519299(PQKBTitleCode)TC0000940824(PQKBWorkID)10955521(PQKB)11225520(OCoLC)694141243(MiAaPQ)EBC3014538(IMF)WPIEE2006119(EXLCZ)99336000000044309520020129d2006 uf 0engur|n|---|||||txtccrFiscal Discipline and Exchange Rate Regimes : Evidence From the Caribbean /Rupa Duttagupta, Guillermo TolosaWashington, D.C. :International Monetary Fund,2006.1 online resource (37 p.)IMF Working Papers"May 2006."1-4518-6379-9 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. FIXED EXCHANGE RATES, CURRENCY UNIONS, AND FISCAL DISCIPLINE""; ""III. EMPIRICAL ANALYSIS""; ""IV. CONCLUSION""; ""REFERENCES""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 ability to spread the costs of overspending in terms of the inflation tax across both time-given the fixed exchange rate-and space-given the currency union. In contrast, such free-riding behavior does not arise under flexible regimes owing to the immediate inflationary impact of spending. Next, empirically, it shows that fiscal stances in countries with fixed pegs and currency unions regime demonstrate greater free-riding behavior than countries with more flexible regimes in 15 Caribbean countries during 1983-2004.IMF Working Papers; Working Paper ;No. 2006/119Fiscal policyCaribbean AreaEconometric modelsForeign exchange ratesCaribbean AreaEconometric modelsExports and ImportsimfForeign ExchangeimfMacroeconomicsimfPublic FinanceimfComparative or Joint Analysis of Fiscal and Monetary PolicyimfStabilizationimfTreasury PolicyimfInternational Monetary Arrangements and InstitutionsimfFiscal PolicyimfFinancial Aspects of Economic IntegrationimfCurrencyimfForeign exchangeimfInternational economicsimfExchange rate arrangementsimfConventional pegimfFiscal stanceimfFiscal policyimfMonetary unionsimfEconomic integrationimfAntigua and BarbudaimfFiscal policyEconometric models.Foreign exchange ratesEconometric models.Exports and ImportsForeign ExchangeMacroeconomicsPublic FinanceComparative or Joint Analysis of Fiscal and Monetary PolicyStabilizationTreasury PolicyInternational Monetary Arrangements and InstitutionsFiscal PolicyFinancial Aspects of Economic IntegrationCurrencyForeign exchangeInternational economicsExchange rate arrangementsConventional pegFiscal stanceFiscal policyMonetary unionsEconomic integrationDuttagupta Rupa1462085Tolosa Guillermo1462086International Monetary Fund.Western Hemisphere Dept.DcWaIMFBOOK9910788521403321Fiscal Discipline and Exchange Rate Regimes3670936UNINA