Series: IMF Working Papers
Author(s): Patrick Imam
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 January 2010
Keywords: Micro-states, Currency board, Fixed exchange rate, Geweke- Hajivassiliou-Keane Multivariate Simulator, exchange rate, inflation, central bank, Geweke-hajivassiliou-keane Multivariate Simulator,
In this paper we first explain why most microstates (countries with less than 2 million inhabitants) have gained independence only in the last 30 years. Despite the higher costs and risks microstates face, their ab...