Cover Selected Issues Papers
Policy Coordination in Lesotho: Kingdom of Lesotho
Author:
Mr. Yibin Mu
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Series:
Selected Issues Papers
Volume/Issue:
Volume 2022: Issue 003
Language:
English
Publication Date:
06 Dec 2022
DOI:
https://doi.org/10.5089/9798400226601.018
ISBN:
9798400226601
ISSN:
2958-7875
Pages:
14
Keywords:
macroeconomic policy; fiscal policy; monetary policy; fixed exchange; debt policy; financial stabilty; policy coordination
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In a country such as Lesotho with high capital mobility and leakages abroad, the relationship between both fiscal, monetary, and exchange rate policy is intertwined, such that public spending and reserves are strongly linked. The paper offers an overview of the economic institutions and arrangements in Lesotho, discusses a short primer on macroeconomic policies under a fixed exchange rate, stresses a vital role for macro policy coordination in Lesotho, and proposes a macro policy framework. While the paper is developed in context of Lesotho, the analysis should also be applicable to small open economies under the fixed exchange rate arrangement.
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Cover Selected Issues Papers
Selected Issues Papers
Publisher:
International Monetary Fund
Volume 2022: Issue 003