Growing experience with decentralization indicates that a country's public finance system suffers when subnational governments expose themselves to excessive risk. But central governments often lack the information needed to monitor the fiscal risks of subnational governments. Several countries,...

The economic policy note discusses the issue of serious fiscal instability faced by many governments as a result of their contingent liabilities, which are associated with major hidden fiscal risks. Direct liabilities are predictable obligations that will arise in any event, and are the main...

As New Zealnd's population ages, the government must look to health care and pension policies to curb the government's rising liabilities. In New Zealand in the next 50 years, an aging population is expected to elevate government liabilities and weaken the government's fiscal position. To...

How a price increase in the nontradables sector of a transition economy affects the exchange rate, relative prices, wages, and, indirectly, the movement of factors of production.Polackova analyzes the macroeconomic effects of inflation in the nontradables sector of a small open economy to...