Format:
1 Online-Ressource (circa 32 Seiten)
,
Illustrationen
ISBN:
9798400202773
Series Statement:
Working paper / International Monetary Fund WP/22, 43
Content:
Bolivia has achieved noteworthy success over the past 15 years in raising incomes, reducing poverty, and maintaining macroeconomic stability by deploying commodity revenues to finance transfers, public investment, and state-led development, using an exchange rate peg as a policy anchor. However, with the end of the commodity boom in 2014, fiscal deficits have grown and reserves have fallen. One route to restoring long-run sustainability would be to combine fiscal consolidation with a switch to a floating exchange rate. However, a preference for maintaining the peg could be accommodated with adjustments elsewhere in the policy framework. Employing a detailed dynamic stochastic general equilibrium model of the Bolivian economy, this study assesses the long-run sustainability and relative benefits of alternative policy combinations, and calculates optimal adjustment paths for the transition from the present situation to the steady state. It concludes that continued adherence to a fixed-rate regime, while not optimal, is feasible, if supported by a larger fiscal effort
Additional Edition:
Erscheint auch als Druck-Ausgabe Gonzalez, Andres Fix vs. Float: Evaluating the Transition to a Sustainable Equilibrium in Bolivia Washington, D.C. : International Monetary Fund, 2022 ISBN 9798400203053
Language:
English
Keywords:
Graue Literatur
DOI:
10.5089/9798400203053.001
