| Description |
1 online resource (15 pages) : illustrations |
| Series |
IMF working paper ; WP/06/216 |
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IMF working paper ; WP/06/216.
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| Contents |
Contents -- I. INTRODUCTION -- II. MONEY AND PRICES IN THE MIDDLE EAST AND NORTH AFRICA: THE PUZZLE OF THE MISSING INFLATION -- III. AN ALTERNATIVE ANALYTICAL FRAMEWORK: THE FISCAL THEORY OF PRICES -- A. The Underlying Model: Standard Cash-in-Advance -- B. Multiple Equilibria -- IV. THE FISCAL THEORY OF THE PRICE LEVEL APPLIED TO MENA -- V. IMPLICATIONS FOR FUND POLICY ADVICE -- REFERENCES |
| Summary |
Many countries in the Middle East and North Africa (MENA) region have recently experienced surges in money growth that apparently have not generated significant inflationary pressures. Moreover, several MENA countries have followed monetary policy rules that according to standard monetary theory should have produced macroeconomic instability and possibly hyperinflation. We argue that the Fiscal Theory of the Price Level could usefully provide insights on these developments. Our main conclusion is that a sound fiscal position constitutes a necessary condition for macroeconomic stability whereas "sound" monetary policy is neither sufficient nor necessary. Hence, fiscal policy and public debt deserve particular attention for maintaining macroeconomic stability, by and large consistent with Fund policy advice to MENA countries |
| Bibliography |
Includes bibliographical references |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
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Print version record |
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digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
| Subject |
Debts, Public -- Africa, North
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Debts, Public -- Middle East
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Fiscal policy -- Africa, North
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Fiscal policy -- Middle East
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Inflation (Finance) -- Africa, North
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Inflation (Finance) -- Middle East
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Debts, Public
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Fiscal policy
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Inflation (Finance)
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North Africa
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Middle East
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| Form |
Electronic book
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| Author |
Söderling, Ludvig, author
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International Monetary Fund. Middle East and Central Asia Department.
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| ISBN |
1283516403 |
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9781283516402 |
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9781451909296 |
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1451909292 |
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