Policies for Stabilisation and Growth in Small Very Open Economies, Group of Thirty, 2012: “Small very open economies are very different from large economies, in that they face a foreign exchange constraint that cannot be alleviated by depreciation of the real exchange rate or other policies. This constraint affects monetary, fiscal and exchange rate policy including fiscal sustainability, debt management, and patterns of economic growth. … the most accessible framework for such countries is an exchange rate anchor.”
