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Because of the steady liberalization of the capital account since the early 1990s and increased financial integration of the Indian economy, capital flows to India have moved in tandem with broad global trends. This paper looks at the extent to which India's monetary policy has been affected by the ebbs and flows of the capital it receives. For ease of narration, the paper divides the post-liberalization period since the early 1990s into three phases-early 1990s to early 2000s, a period of increasing but still modest capital flows; early 2000s to 2007-08, a period of capital flow surge when inflows increased rapidly; and a period of sudden stops and volatility, starting in 2008-09, when capital flows reversed in the post-Lehman Brothers collapse, and again during the tapering tantrum of 2013. The paper shows that although ordinarily domestic policy imperatives, such as price stability and growth, have taken precedence over issues related to exchange rate or capital flows in policy rate setting, some accommodation in money supply is evident during the surge and stop episodes. The broad policy mix to handle large increases or reversals of capital flows has included reserve management, liquidity management, and capital flow measures.

Access to Finance --- Capital Flows --- Central Banks --- Currencies and Exchange Rates --- Debt Markets --- Economic Theory & Research --- Emerging Markets --- Finance and Financial Sector Development --- Financial Liberalization --- Macroeconomics and Economic Growth --- Private Sector Development

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Many studies have highlighted how failures of public corporations (otherwise known as state-owned enterprises) can result in huge economic and fiscal costs. To contain the risks associated with these costs, an effective regime for the financial supervision and oversight of public corporations should be put in place. This note discusses the legal, institutional, and procedural arrangements that governments need to oversee the financial operations of their public corporations, ensure accountability for their performance, and manage the fiscal risks they present. In particular, it recommends that governments should focus their surveillance on public corporations that are large in relation to the economy, create fiscal risks, are not profitable, are unstable financially, or are heavily dependent on government subsidies or guarantees.

Aggregate Human Capital --- Aggregate Labor Productivity --- Banking --- Banks and Banking --- Banks and banking, Central --- Business enterprises --- Central Banks and Their Policies --- Central banks --- Contingent liabilities --- Corporate Finance --- Economic sectors --- Economic theory --- Employment --- Financial Institutions and Services: General --- Fiscal policy --- Fiscal risks --- Income economics --- Intergenerational Income Distribution --- Labor --- Labour --- Ownership & organization of enterprises --- Public Administration --- Public employment --- Public finance & taxation --- Public Finance --- Public financial management (PFM) --- Public Sector Accounting and Audits --- Quasi-fiscal operations --- Unemployment --- Wages --- South Africa

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Latin America’s central banks have made substantial progress towards delivering an environment of price stability that is supportive of sustainable economic growth. We review these achievements, and discuss remaining challenges facing central banking in the region. Where inflation remains high and volatile, achieving durable price stability will require making central banks more independent. Where inflation targeting regimes are well-established, remaining challenges surround assessments of economic slack, the communication of monetary policy, and clarifying the role of the exchange rate. Finally, macroprudential policies must be coordinated with existing objectives, and care taken to preserve the primacy of price stability.

Banks and banking, Central --- Banks and Banking --- Finance: General --- Foreign Exchange --- Inflation --- Central Banks and Their Policies --- Price Level --- Deflation --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- General Financial Markets: Government Policy and Regulation --- Currency --- Foreign exchange --- Macroeconomics --- Banking --- Finance --- Foreign exchange intervention --- Exchange rates --- Financial sector stability --- Prices --- Financial sector policy and analysis --- Central bank autonomy --- Central banks --- Banks and banking --- Financial services industry --- Chile

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The paper discusses the effectiveness of independent fiscal institutions—or fiscal councils—in taming the deficit bias that emerged in the 1970s. After a review of the main theoretical arguments and recent trends about fiscal councils, we develop a stylized model showing how a fiscal council can effectively mitigate the deficit bias even though it has no direct lever on the conduct of fiscal policy. We show that the capacity of the fiscal council to improve the public’s understanding of the quality of fiscal policy contributes to better align voters and policymakers’ incentives and to tame the deficit bias affecting well-intended governments. After mapping the model’s key features into a broad set of criteria likely to contribute to the effectiveness of a fiscal council, we use the 2014 vintage of the IMF dataset on independent fiscal institutions to assess whether existing institutions have been built to work.

Fiscal policy --- Debts, Public --- Budget deficits --- Econometric models. --- Deficits, Budget --- Budget --- Deficit financing --- Debts, Government --- Government debts --- National debts --- Public debt --- Public debts --- Sovereign debt --- Debt --- Bonds --- Tax policy --- Taxation --- Economic policy --- Finance, Public --- Government policy --- Banking --- Banks and Banking --- Central bank autonomy --- Central Banks and Their Policies --- Central banks --- Debt Management --- Fiscal councils --- Fiscal Policy --- Fiscal rules --- Macroeconomics --- National Deficit Surplus --- Policy Coordination --- Policy Designs and Consistency --- Policy Objectives --- Public finance & taxation --- Public Finance --- Sovereign Debt --- Structure, Scope, and Performance of Government --- New Zealand

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This paper discusses Jamaica’s Request for Stand By Arrangement (SBA) and Cancellation of the Current Extended Arrangement Under the Extended Fund Facility (EFF). Fiscal discipline and proactive debt management have helped reduce public debt by more than 25 percent of GDP since the start of the extended arrangement under the EFF. Macroeconomic stability is becoming entrenched as evidenced by low inflation, the buildup of foreign currency reserves, and a decline in the current account deficit. Important reforms are also being undertaken to unlock Jamaica’s growth potential. In view of the country’s recent track record and authorities’ commitment to reforms and maintaining an open dialog with the IMF, the IMF staff supports the request for the precautionary SBA.

Banks and Banking --- Macroeconomics --- Public Finance --- Debt --- Debt Management --- Sovereign Debt --- Public Enterprises --- Public-Private Enterprises --- Public Administration --- Public Sector Accounting and Audits --- National Government Expenditures and Related Policies: General --- Central Banks and Their Policies --- Public finance & taxation --- Civil service & public sector --- Financial administration & public finance law --- Banking --- Public debt --- Public sector --- PFM legal and regulatory frameworks --- Expenditure --- Open market operations --- Economic sectors --- Public financial management (PFM) --- Central banks --- Debts, Public --- Finance, Public --- Law and legislation --- Expenditures, Public --- Jamaica --- Pfm legal and regulatory frameworks