This fourteenth installment in the series dealing with the impact of the Articles of Agreement of the International Monetary Fund on litigation 1 discusses cases decided in England, France, the Federal Republic of Germany, and the State of New York. All four cases are considered in relation to the effect of the Articles on issues involving the exchange control regulations of a member of the Fund that was not the country of the forum. The New York case has an additional interest because of its bearing on the enforcement of contractual obligations arising from Eurodollar loans.
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.