Output falls precipitously in most emerging nations that experience financial crises. The authors conjecture that a significant part of the real impact of financial crises is due to the fact that during turbulent times firms choose to leave a large fraction of productive resources idle until...

In this article Evan Koenig looks at measures of the Federal Reserve’s policy stance and discusses why short-term interest rates will almost certainly have to increase at some point. The article also examines the historical relationship between Federal Reserve policy, inflation and resource...

Previous economic research has identified two ways policy to mitigate global climate change could be implemented without minimizing world costs. Costs are boosted when agreements to reduce greenhouse gas emissions are limited to a subset of countries or deadlines for reducing emissions force the...

This article provides an overview of the conference "Science and Cents: Exploring the Economics of Biotechnology," hosted by the Federal Reserve Bank of Dallas in April 2002. The conference brought together distinguished experts who spoke about economic and scientific issues surrounding...

When economists are concerned that the economy may be about to change direction, one of the indicators to which they give special scrutiny is the Purchasing Managers’ Index (PMI), released monthly by the Institute for Supply Management. This article discusses the construction and...

This article reviews the various means through which governments and central banks have sought to guarantee long-run price stability. Finn Kydland and Mark Wynne argue that monetary regimes or standards can all be viewed as more or less successful attempts to overcome the well-known...

A growing number of high-profile companies have had to restate their earnings at substantially lower levels to correct the prior use of "aggressive" and even fraudulent accounting practices. Because the companies’ auditors approved the original reports, policymakers have questioned the...