Killing Two Birds with One Stone
It may be true that nobody has ever killed two birds with one stone. But there are many occasions on which two separate aims have been achieved by one policy instrument. Progressive rates of income tax redistribute income from rich to poor and, at the same time, stabilise the economy in the face of booms and slumps. Higher interest rates attract funds from abroad and reduce investment at home. Devaluation encourages exports and discourages imports. And so on.
KeywordsCentral Bank Rich Country Donor Country International Reserve International Development Association
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