Analysis Of Liberia's Heavy Reliance On Foreign Aid To Finance Its Budget & Its Implications
MACROECONOMIC
Fiscal & Monetary
Insight & Analysis
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On this page, we provide insights and analysis of fiscal & monetary issues and contexts in Liberia. We focus on the following:
Public debt and its sustainability: Liberia has a significant amount of public debt, and there are concerns about the country's ability to service this debt in the long term. Analyzing the government's borrowing policies, debt management strategies, and the impact of debt on the country's fiscal and monetary policies would be an important area of study.
Exchange rate policy: Liberia has a floating exchange rate system, but there are concerns about the stability of the Liberian dollar and the impact on the country's economy. Analyzing the government's exchange rate policies, the impact of exchange rate fluctuations on the economy, and the effectiveness of the current exchange rate regime would be an important area of study.
Taxation policy: Liberia's tax system is relatively underdeveloped, and there are concerns about the government's ability to generate revenue to fund public services and infrastructure development. Analyzing the government's taxation policies, the effectiveness of tax collection efforts, and the impact of taxation on the economy would be an important area of study.
Monetary policy and inflation: Liberia's central bank has the responsibility of implementing monetary policy and maintaining price stability. Analyzing the effectiveness of the central bank's monetary policies, the impact of inflation on the economy, and the potential for inflationary pressures to destabilize the economy would be an important area of study.
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