01754cas a2200241 a 4500 AALejournalIMF010170 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451931235 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Dynamics of Devaluation and "Equivalent" Fiscal Policies for a Small Open Economy. Washington, D.C. : International Monetary Fund, 1989. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In pursuing a steady-state reserve target, policymakers in small open economies can resort to devaluation or to temporary increases in public saving. This paper contrasts the dynamic implications of these alternative policies in a model with optimizing agents who possess perfect foresight. In general, the private sector cannot be insulated from the effects of the government's reserve-accumulation policies. The dynamic effects of devaluation depend on the fiscal policy rule in effect. In contrast to devaluation, the 'equivalent' fiscal policies imply discontinuities in private consumption and temporary tax increases may cause key macroeconomic variables to overshoot their steady-state values. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1989/001 Full text available on IMF http://elibrary.imf.org/view/journals/001/1989/001/001.1989.issue-001-en.xml IMF e-Library