04710oam 22011414 450 991097049740332120250426110559.0978661382055697814623901681462390161978145198633414519863359781282392120128239212397814519091351451909136(CKB)3360000000443095(EBL)3014538(SSID)ssj0000940824(PQKBManifestationID)11519299(PQKBTitleCode)TC0000940824(PQKBWorkID)10955521(PQKB)11225520(OCoLC)694141243(IMF)WPIEE2006119(MiAaPQ)EBC3014538(IMF)WPIEA2006119WPIEA2006119(EXLCZ)99336000000044309520020129d2006 uf 0engur|n|---|||||txtccrFiscal Discipline and Exchange Rate Regimes : Evidence From the Caribbean /Rupa Duttagupta, Guillermo Tolosa1st ed.Washington, D.C. :International Monetary Fund,2006.1 online resource (37 p.)IMF Working Papers"May 2006."9781451863796 1451863799 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 modelsComparative or Joint Analysis of Fiscal and Monetary PolicyimfConventional pegimfCurrencyimfEconomic integrationimfExchange rate arrangementsimfExports and ImportsimfFinancial Aspects of Economic IntegrationimfFiscal PolicyimfFiscal policyimfFiscal stanceimfForeign ExchangeimfForeign exchangeimfInternational economicsimfInternational Monetary Arrangements and InstitutionsimfMacroeconomicsimfMonetary unionsimfPublic FinanceimfStabilizationimfTreasury PolicyimfAntigua and BarbudaimfFiscal policyEconometric models.Foreign exchange ratesEconometric models.Comparative or Joint Analysis of Fiscal and Monetary PolicyConventional pegCurrencyEconomic integrationExchange rate arrangementsExports and ImportsFinancial Aspects of Economic IntegrationFiscal PolicyFiscal policyFiscal stanceForeign ExchangeForeign exchangeInternational economicsInternational Monetary Arrangements and InstitutionsMacroeconomicsMonetary unionsPublic FinanceStabilizationTreasury PolicyDuttagupta Rupa1815725Tolosa Guillermo1816350International Monetary Fund.Western Hemisphere Dept.DcWaIMFBOOK9910970497403321Fiscal Discipline and Exchange Rate Regimes4372371UNINA